Frequently Asked Questions

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General IOLTA Questions

What is IOLTA?

How are IOLTA funds used?

Have IOLTA Programs operated successfully elsewhere?

What’s the difference between an IOLTA account and other types of trust accounts?

Information for Attorneys

How does my trust account become an IOLTA account?

What rules govern IOLTA?

Does my participation in IOLTA deprive my clients of their interest money?

Are there any administrative duties caused by the program?

What are the tax consequences of participation in the program?

Information for Banks

What is the Automatic Reporting of Trust Account Overdrafts (ARTAO)?

How does the program affect financial institutions?

Do all financial institutions participate in this program?

What is a Leadership Bank?

Information for Grant Seekers

Who may apply for an IOLTA grant?

How and when does a qualifying organization apply for an IOLTA grant?

What is the grant period for IOLTA grants?

How are IOLTA grant decisions made?

What should an organization do if they do not spend all of their grant money?

What are the reporting requirements for grantees?

Rule Change

Why did the IOLTA rules change?

What does the new IOLTA rule do?

What is rate comparability?

Can I still opt-out of participation in IOLTA?

When did the IOLTA rules change?

How will I know if my bank has been approved to hold IOLTA accounts?

How will the IOLTA rule change affect me?

Will attorneys or law firms have to move their IOLTA accounts to financial institutions that pay higher interest rates?

Who is responsible for monitoring compliance with the IOLTA rules?

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