All Delaware attorneys in private practice must comply with the IOLTA (Interest on Lawyer Trust Accounts) Rules under the Delaware Lawyers’ Rules of Professional Conduct Rules 1.15 and 1.15A. The Foundation administers the program on behalf of the Delaware Supreme Court.

By pooling nominal-or-short-term client funds in an IOLTA account, attorneys help generate interest income that supports civil legal aid, law-related education, and related public-interest work in Delaware.
This page walks you through what funds must go into IOLTA, how to open/change/close an account, ongoing compliance obligations, and helpful resources.

1. “IOLTA-Eligible Funds”
Under Rule 1.15(f), when you hold client funds (or third-party funds) you must make a reasonable determination whether the funds should be (i) placed in an interest-bearing account for the benefit of the client/third-party, or (ii) deposited in a pooled IOLTA account because the funds are nominal in amount and/or held for a short period, such that any interest earned would not exceed costs of administration. If you determine the funds are appropriately placed in a client-trust account (i.e., large enough and held long enough), then establish a separate trust account and those funds should not be included in your IOLTA account. Otherwise you must deposit client funds in a compliant IOLTA account.
2. Mandatory Participation
If you hold IOLTA-eligible funds in private practice, you must maintain a pooled IOLTA account at an eligible institution. If you do not hold any such funds (e.g., in-house counsel, government attorney not in private practice), you must certify that fact on your annual registration with the Supreme Court.

1. Select an Eligible Financial Institution

You must open the IOLTA account only at a financial institution eligible under Rule 1.15A. We encourage you to select a “Prime Partner” bank that pays robust IOLTA rates to benefit our communities. The Prime Partner list is available here.

2. Open the IOLTA Account

When opening, ensure the following:

• The account is established in the name of the attorney or law firm (as registered with the Delaware Supreme Court).
• The account title includes: “IOLTA” and/or “Rule 1.15A Attorney Trust/ Escrow Account”. For example: “Smith & Jones, LLC – IOLTA Rule 1.15A Escrow Account”
• The bank associates the account with the Foundation’s tax ID number (so the interest flows properly to the Foundation).
• Confirm the bank will remit interest (net of allowable service charges) directly to the Foundation at the required frequency and provide monthly statements.
• Ensure that the account is opened and remits to the proper state.
• A Delaware attorney must be a signatory on the account.

3. Enroll with the Delaware Bar Foundation
   • Once your account is open (or converted), complete the “Notice of Enrollment” form and submit to the Foundation within 30 days.
4. Changing or Closing the IOLTA Account
   • If you change your firm’s name, you must notify Foundation and the bank (and the Supreme Court) via a new enrollment form.
   • If you close the account, send a written notice to the Foundation with the account number, institution, lawyer/firm name, and closure date. Also, be sure to follow the process noted above if you open a new account at a different eligible financial institution.

1. Account Setup and Fees
• Only allowable reasonable service charges may be deducted from interest earned on the IOLTA account. Overdraft fees, wire fees, cash management fees must be borne by the lawyer/firm.
• Up to $2,000 of firm funds may be kept in the IOLTA account (solely to cover bank service charges) without violating commingling rules
2. Trust Accounting & Record-Keeping
• Attorneys must maintain separate trust (escrow) accounts from operating/firm accounts. Commingling firm funds with client funds is strictly prohibited, apart from permitted nominal amount to cover fees.
• Records must be kept for at least five years after the last transaction/client matter ends. (Bank statements, cancelled checks, client ledgers, deposit slips, reconciliation reports.)
• Monthly reconciliation (best practice) comparing: (i) bank statement balance, (ii) internal trust ledger, (iii) sum of individual client ledger balances
3. Overdraft Notification
• Under Rule 1.15A, any trust/escrow account must be at an approved institution which agrees to notify the Office of Disciplinary Counsel of Delaware in the event of an overdraft or instrument presented against insufficient funds.
4. Annual Certification
   
   • Each attorney (or managing partner of a law firm) must certify annually that the rules have been reviewed and complied with. Many firms undertake a self-audit or engage a CPA to perform a “pre-certification” based on the audit checklist provided by the Lawyers’ Fund for Client Protection.

1. • Depositing client funds into a firm operating account
   • Failing to open a pooled IOLTA account when required
   • Using non-eligible financial institutions
   • Allowing overdrafts in the trust account without reporting
   • Insufficient record-keeping or delayed reconciliations
   • Failing to submit enrollment or certification forms

• Is participation mandatory? Yes, for private-practice attorneys holding IOLTA-eligible funds.
• What counts as IOLTA-eligible funds? Funds that cannot earn income for the client (net of costs) and are nominal or short-term.
• Can I maintain a separate interest-bearing account for a client? Yes — if you reasonably determine the funds are large/long-term enough to justify it. Otherwise you must use IOLTA.)
• If I hold no eligible funds, do I still need an IOLTA account? No — but you must certify that fact on your annual registration statement.
• How do I know if the bank is eligible? Check the Foundation website for the list of approved financial institutions. Where you bank matters – please ask the rate to be paid on IOLTA accounts before making your choice! Or simply choose one of our Prime Partner institutions who pay preferred rates on your IOLTA funds.

• Notice of Enrollment Form (for opening/changing IOLTA account)
• List of Eligible Financial Institutions (IOLTA banks)
• Rules: Rule 1.15 and Rule 1.15A
• Frequently Asked Questions (FAQ) for attorneys

• Lawyers' Fund for Client Protection
• Delaware State Bar Association
• Delaware Courts - Information for Attorneys