What is an IOLTA Account, and Who Needs One?

For attorneys handling client funds, keeping them separate from personal or business accounts is a legal and ethical requirement. In Oregon, Interest on Lawyer Trust Accounts (IOLTAs) offer a compliant and beneficial solution to this problem. But what exactly are they, and who should consider opening one?

What is an IOLTA Account?

An IOLTA is a trust account that lawyers and law firms use to hold client funds that are too small or temporary to justify opening a separate trust account. Instead of earning interest for the attorney or the client, the interest generated is directed to the Oregon Law Foundation, funding legal aid programs that provide access to justice for underserved communities.

Who Needs an IOLTA Account?

• Attorneys and Law Firms – Oregon attorneys who handle client funds, such as settlement proceeds, retainers, or escrow funds, are generally required to place them in an IOLTA account if the funds don't belong to the attorney.
• Real Estate and Escrow Attorneys – Those managing short-term client funds related to real estate transactions or other legal matters may use IOLTAs.
• Solo Practitioners and Small Firms – An IOLTA account ensures compliance with legal and ethical obligations, even if you're a solo attorney.

Why Bank with First Federal for Your IOLTA Needs?

We strive to make it easy to manage your IOLTA account while contributing to legal aid initiatives in Oregon. Our IOLTA accounts come with easy online access and personalized support from a local banking team that understands the needs of legal professionals.

If you're an attorney needing an IOLTA account or want to learn more, contact us today.