Lawyer FAQ
BEFORE OPENING AN ACCOUNT
Should I open an IOLA Account?
New York attorneys who hold "qualified funds" (as explained below), in trust for a client or third-party beneficial owner are subject to the IOLA Fund's New York State statutes and regulations and must open and maintain an IOLA escrow account.
What are “qualified funds”?
Who determines whether funds are "qualified funds"?
Does the Fund provide a benchmark for determining whether a sum of money is appropriate to be placed in an IOLA?
OPENING AN IOLA ACCOUNT
How do I open an IOLA account?
Please click here for A Lawyer’s Guide to IOLA Accounts -- it has detailed instructions on opening an IOLA account and a link to the Enrollment Form.
How do I choose a bank?
Can I maintain multiple IOLA accounts?
How Should I title my IOLA account?
CLIENT QUESTIONS
I think my attorney stole my money. What do I do?
Clients who have lost money due to an attorney’s mishandling of escrow funds may apply for reimbursement to the Lawyer’s Fund for Client Protection.
MANAGING YOUR IOLA ACCOUNT
If the bank offers overdraft protection, may I have it on my IOLA account?
No. Overdraft protection is expressly prohibited on all attorney escrow accounts, including IOLA accounts. 22 NYCRR Part 1200, Rule 1.15(b)(1).
Also, please take note that banks are required report “whenever a properly payable instrument is presented against an [IOLA account] which contains insufficient available funds, irrespective of whether the instrument is honored.” 22 NYCRR Part 1300.1(c).
Also, please take note that banks are required report “whenever a properly payable instrument is presented against an [IOLA account] which contains insufficient available funds, irrespective of whether the instrument is honored.” 22 NYCRR Part 1300.1(c).
Which fees must the attorney pay?
Which fees does the Fund pay?
May I withdraw funds from my IOLA account via a wire transfer? What about other electronic transfers? An ATM card?
The bank took a fee from the principal in my account. What should I do?
Can I move my IOLA account to a different bank?
MISCELLANEOUS QUESTIONS
An attorney who maintained an IOLA account has died. What should be done about the client funds that are still in the account?
The procedure for designation of successor signatories is explained in the Disciplinary Rules of the Code of Professional Responsibility. See Rules of Professional Conduct: 22 N.Y.C.R.R. Part 1200, Rule 1.15 (g).
Can I hold escrow funds in an IOLTA account in another state?
How does the FDIC cover IOLA deposits?
I would like to learn more about handling client funds. Are resources available to help me?