Published: December 26, 2012
Tags: Congress, Dodd-Frank Wall Street Reform and Consumer Protection Act, FDIC, IOLTA accounts
WASHINGTON – Unless Congress acts by year’s end, IOLTA accounts will lose the unlimited FDIC insurance protection that has been available to them since the enactment of the Dodd-Frank financial reform law.
The formal term is “Interest on Lawyer Trust Accounts,” but most lawyers simply call them IOLTA accounts. Every engagement agreement should stipulate that the client’s payment for work that has been performed is to be deposited into a lawyer’s general account and payment for work that will be performed is generally to be deposited into a client’s IOLTA account.