Congratulations to all the recent bar passers and new members of the Massachusetts bar! Becoming a lawyer is a huge achievement made possible by many years of hard work and sacrifice, and it opens doors to lots of exciting career opportunities and ways to give back to your communities. You should be very proud!
Membership in the Bar also comes with certain responsibilities, including carefully following the rules about handling funds belonging to your clients using Interest on Lawyers’ Trust Accounts, often called “IOLTA” accounts. It’s important for attorneys to understand the trust accounting rules and we know IOLTA issues can be stressful for new and more experienced attorneys alike. The IOLTA Committee wants to help! Our website has a lot of resources to help you understand when to open an IOLTA account and how to properly maintain the account to protect your clients’ funds. We wanted to highlight a few of the most important points. You can view our complete Attorney FAQs and other FAQs on the IOLTA Committee website.
First things first: The Massachusetts IOLTA Committee was established by the Supreme Judicial Court to receive the interest on IOLTA accounts and oversee the IOLTA program. The interest received by the IOLTA Committee benefits our communities by supporting civil legal aid programs that provide legal advice and help to people who cannot afford a lawyer and by funding projects that work to improve the administration of justice across the Commonwealth.
Under Massachusetts Rule of Professional Conduct 1.15, all lawyers who hold client funds must deposit such funds in one of two types of interest-bearing accounts: either a pooled account (IOLTA account) for all client funds that are nominal in amount or are to be held for a short period of time; or an individual account, with interest payable to the client. Examples of client funds that may be appropriate to put in an IOLTA account include settlement checks, retainers and other fees advanced for services not yet performed, and funds related to real estate transactions.
There is no need to open an IOLTA account in anticipation of receiving client funds. You also do not need an IOLTA account if you are an out-of-state lawyer licensed in Massachusetts who does not have a physical office in Massachusetts; you are publicly employed, a teacher, or in another position where you do not receive client funds; or if you are not currently employed as a lawyer. Also, new lawyers joining a law firm should first confirm whether the firm has an existing IOLTA account before attempting to open a new account, as chances are good that if the firm receives IOLTA eligible funds they already have an IOLTA account that you will use.
What IOLTA information do I need for the Board of Bar Overseers annual registration?
As part of the annual BBO attorney registration, you are required to fill out information regarding your compliance with the IOLTA rules by either identifying your IOLTA account or indicating the reason that you are exempt from the IOLTA account requirement. Please contact the IOLTA Committee if you have questions about the IOLTA section of the BBO registration; all other registration questions should be directed to the BBO by calling 617-728-8750 or sent by email to This email address is being protected from spambots. You need JavaScript enabled to view it..
What if I need an IOLTA account right away?
Although many new attorneys will not require an IOLTA account for the reasons noted above, if you do need to open a new account because you will receive IOLTA eligible client funds, the process is very straightforward and not much more difficult than opening a regular checking account (with some key differences).
To learn how to open a new IOLTA account and for other information about IOLTA including the Leadership Bank program, click below to visit our For Attorneys page
If you have any questions or would like to request a free copy of any of our materials, please do not hesitate to contact us at 617-723-9093 or This email address is being protected from spambots. You need JavaScript enabled to view it..