Delaware IOLTA Program

RULE 1.15 OF THE LAWYERS’ RULES OF PROFESSIONAL CONDUCT

Rule 1.15 of the Delaware Lawyers’ Rules of Professional Conduct requires lawyer participation in the IOLTA program. Delaware lawyers in private practice are required to maintain pooled client trust funds in IOLTA accounts. Delaware’s IOLTA rules also include interest rate comparability requirements. The implementation of these Rules is the responsibility of the Delaware Bar Foundation, administrator of the Court’s IOLTA program. The following are common questions and answers related to the Rules:

IS IOLTA PARTICIPATION MANDATORY?

Yes. Delaware’s IOLTA Rules maximize the revenue available for the charitable purposes of the IOLTA program by ensuring that all appropriate funds are maintained in IOLTA accounts and that those accounts earn competitive interest rates.

WHAT ARE “IOLTA-ELIGIBLE” FUNDS?

I PRACTICE IN A LAW FIRM. MUST ALL THE LAWYERS ACT? HOW CAN THIS REQUIREMENT BEST BE HANDLED AT A LAW FIRM?

WHAT IF I HAVE A POOLED TRUST CHECKING ACCOUNT, BUT IT’S NOT ENROLLED IN IOLTA?

HOW DO I OPEN A NEW IOLTA ACCOUNT?

HOW CAN THIS REQUIREMENT BEST BE HANDLED AT A LAW FIRM?

MAY LAWYERS DEPOSIT INDIVIDUAL CLIENT OR THIRD PARTY FUNDS IN ACCOUNTS WHICH PAY INTEREST TO BE PASSED ON TO THE CLIENT?

WHAT IS AN “ELIGIBLE” FINANCIAL INSTITUTION?

Eligible financial institutions are those that voluntarily offer IOLTA accounts and pay on an IOLTA account the highest rate of interest or dividends generally available from the institution to its non-IOLTA customers -- when IOLTA accounts meet or exceed the same minimum balance or other account eligibility qualifications, if any. The Foundation certifies financial institutions as “eligible” and maintains a list of eligible financial institutions on its website.

HOW WILL I KNOW IF MY FINANCIAL INSTITUTION IS IN COMPLIANCE WITH DELAWARE’S RULES?

WHO PAYS SERVICE CHARGES AND FEES ON IOLTA ACCOUNTS?

DO DELAWARE’S IOLTA RULES CREATE ADDITIONAL ADMINISTRATIVE BURDENS AND COSTS FOR LAWYERS, PARTICULARLY SOLE PRACTITIONERS?

I’M NOT IN PRIVATE PRACTICE. HOW DO DELAWARE’S IOLTA RULES AFFECT ME?

ARE THERE EXEMPTIONS OTHER THAN FOR LAWYERS NOT IN PRIVATE PRACTICE?

ARE THERE OTHER REASONS I WOULD NOT NEED AN IOLTA ACCOUNT?

WHAT IF I STILL HAVE QUESTIONS?

Any lawyer or law firm should direct additional questions concerning IOLTA to the Delaware Bar Foundation. You may contact the Foundation by calling (302)658-0773, or emailing its executive director, Megan Greenberg mgreenberg@delawarebarfoudation.org.

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Delaware IOLTA Program

RULE 1.15 OF THE LAWYERS’ RULES OF PROFESSIONAL CONDUCT

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