Interest on Lawyers’ Trust Accounts, or "IOLTA", is a program mandated by the Supreme Judicial Court. It requires lawyers and law firms to establish interest-bearing accounts for client deposits which are nominal in amount or large amounts held for a short period of time. The pooled interest on IOLTA accounts makes improvements to the administration of justice and supports the delivery of legal services to low-income clients. IOLTA accounts held in Leadership Institutions produce substantially higher revenue to promote equal access to justice.
Interest on Lawyers’ Trust Accounts, or "IOLTA", is a program mandated by the Supreme Judicial Court. It requires lawyers and law firms to establish interest-bearing accounts for client deposits which are nominal in amount or large amounts held for a short period of time. The pooled interest on IOLTA accounts makes improvements to the administration of justice and supports the delivery of legal services to low-income clients. IOLTA accounts held in Leadership Institutions produce substantially higher revenue to promote equal access to justice.
FOR ATTORNEYS
FOR FINANCIAL INSTITUTIONS
WHERE DOES THE MONEY GO?
ELIGIBLE INSTITUTIONS
Pursuant to a July 26, 2006 order of the Supreme Judicial Court, financial institutions must be certified by the IOLTA Committee to be eligible to hold IOLTA funds. Additional changes in the operation of IOLTA accounts were adopted in December, 2008.
Effective February 1, 2009, all Massachusetts attorneys may only deposit their IOLTA funds in financial institutions that have been certified to meet new requirements.
Please visit our List of Approved IOLTA Depositories to insure your accounts are maintained at an eligible institution.
As of August 1, 2023:
- The Leadership Bank interest rate is 4.13%
- The Safe Harbor interest rate is 3.03%
IN THE NEWS
Massachusetts Supreme Judicial Court Appoints 3 New Members to the IOLTA Committee
Massachusetts Supreme Judicial Court Appoints 3 New Members to the IOLTA Committee. . .
SJC Adopts Post-Olchowski Amendments to IOLTA Rules
Rule 1.15 Amended for Undistributable IOLTA Funds
New Requirements for Notice to IOLTA Committee Regarding Proposed Class Action Cy Pres Recipient
Residual or cy pres funds from class actions provide critical financial support to the Massachusetts IOLTA Committee and the legal aid organization