IOLTA Information for Financial Institutions
IOLTA – Interest on Lawyers Trust Accounts – works with members of the Idaho State Bar and the Idaho banking community to allow attorneys to place client funds, which are nominal in amount or held for a short period of time, into pooled interest-bearing accounts. Interest earned is remitted to the Law Foundation who distributes these funds through the IOLTA grant process. For more information about IOLTA, contact Carey Shoufler at (208) 334-4500
IOLTA Funds Support Abused and Neglected Children
Court Appointed Special Advocates (CASA) defend the best interests of abused and neglected children by providing trained volunteers in child protection cases. Thanks in part to an IOLTA grant, Idaho CASA programs were able to improve the administration of justice by recruiting and training more volunteers. Idaho children who need a voice in court will not have to remain on a waiting list for the critical services they urgently need.
- Publication of the Leadership Bank list in the Advocate, which reaches over 5000 attorneys and judges,as well as many business owners and other professionals.
- Inclusion of the Leadership Bank list in the Law Foundation’s annual report and on its website.
- Distribution of the Leadership Bank list to Idaho attorneys requesting IOLTA account recommendations and information.
- Citation of IOLTA participation in the financial institution’s CRA statement as evidence of community investment.
To honor banks that commit to offering favorable interest rates on IOLTA accounts, even in uncertain financial times, the Law Foundation created the Leadership Bank program. More information about Leadership Banks.
- Make sure your bank is on the Approved Financial Institutions List. Contact Debbie Dudley at (208) 334-4500 for information about becoming an approved financial institution.
- Ask the attorney opening the account to fill request a Trust Account Certificate from the Idaho State Bar.
- When the attorney brings the Trust Account Certificate to the bank, add the new account information, make a copy of the filled out certificate and keep a copy for the bank.
For more detailed information on IOLTA guidelines, read the Idaho State Bar's Guidelines for Financial Institutions.
You may download the ILF Remittance Report or use one created by your institution. Please note that each report must meet the following guidelines:
- The financial institution must remit all net interest earned on each IOLTA account on either a monthly or a quarterly basis.
- Each payment must be accompanied by the following information:
- Name and address of institution.
- Name and number of attorney account.
- Average daily balance.
- Dates of reporting period.
- Interest earned.
- Service charges, if any.
- Net interest paid.
- Interest rate(s) for reporting period.
- Remit payment by either a check made payable to the Idaho Law Foundation or a transfer of earned interest into an Idaho Law Foundation master account at the financial institution (Please contact the Idaho Law Foundation if you wish to remit in this manner.)
- Provide the depositing attorney with reports as agreed between the attorney and the financial institution.