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Copyright ©2001 Massachusetts News, Inc. Photocopying and data processing storage of all or any part of this issue may not be made without prior written consent.
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IOLTA In A Nutshell
January 12, 2001 A typical IOLTA program works like this: The highest court of a state uses its inherent authority to regulate the bar to compel every lawyer in the state to set up an IOLTA checking account. Small sums and large sums held for short periods are then periodically deposited into the account as transactions occur. The bank remits the interest income earned on the IOLTA account, usually monthly, to a general IOLTA account maintained by the state supreme court. The court then periodically disburses the funds in the general account to certain "grantees." The grantees are often foundations closely connected with the state's bar associations and largest law firms. Thus, IOLTA has a constituency that is powerful and politically well connected. Related: Why do judges continue this unconstitutional practice? Why is “Chuck” Rounds so passionate about IOLTA?
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