The Interest on Lawyers’ Trust Accounts (IOLTA)/Interest on Trust Accounts (IOTA) program enables banks to partner with the Connecticut Bar Foundation (CBF) in supporting civil legal aid and access to justice initiatives. Participating banks remit interest earned on qualifying attorney trust accounts directly to CBF.

Banks interested in offering IOLTA accounts must:
1. Be a financial institution authorized to do business in Connecticut, and
2. Complete a brief participation agreement with the Connecticut Bar Foundation.

Once approved, the bank can open and maintain IOLTA accounts for Connecticut attorneys.

Contact Gina Casella at gina@ctbarfdn.org to enroll.

Leadership Banks voluntarily pay interest rates on IOLTA accounts that exceed the required comparability standard, helping generate more funds for legal aid. Their enhanced commitment directly strengthens access to justice across Connecticut.

Participating banks must:
• Pay IOLTA accounts the same interest rate or yield offered on comparable accounts for non-IOLTA customers,
• Remit interest monthly to the Connecticut Bar Foundation, and
• Provide detailed remittance reports identifying each attorney or law firm, account number, and period covered.

Accounts must clearly include:
• The attorney or law firm’s name and address,
• The designation “IOLTA/IOTA” or “Interest on Lawyers’ Trust Account/Interest on Trust Account.” Example: “Smith & Jones, LLC – IOLTA,” and
• Connecticut Bar Foundation’s tax ID number.
This ensures proper identification and reporting.

Interest is calculated according to the bank’s standard method for similar accounts. The bank:
1. Calculates the interest earned,
2. Deducts allowable service charges (if applicable),
3. Sends the net interest to the Connecticut Bar Foundation, and
4. Provides a statement to both the Foundation and the account holder.

Only reasonable and customary service charges may be deducted, such as:
• Account maintenance fees
• Per-check or per-deposit fees
Other fees, such as overdraft or wire fees, should not be charged to IOLTA funds and should be handled separately by the attorney and/or law firm account holder.

Each remittance must be accompanied by a remittance report that includes:
• Name of attorney or firm
• Account number
• Interest earned and fees deducted
• Period covered
Electronic reporting is encouraged to improve accuracy and efficiency.

Under Connecticut’s IOLTA rules, participating banks must pay the highest rate or yield generally available to their non-IOLTA customers on comparable products. The Foundation reviews rates periodically to ensure compliance.
Banks that exceed these requirements are recognized as Leadership Banks and are exempt from completing the compliance report if identifying as a leadership bank.

Lawyers must keep IOLTA accounts at banks, savings and loan associations or open-end investment companies which qualify as “Eligible Institutions.” Banks and savings and loan associations must be authorized to do business in Connecticut and their deposits must be insured by an agency of the federal government. Open-end investment companies must be registered with the Securities and Exchange Commission, must be authorized by federal or state law to do business in Connecticut, and must meet certain capitalization requirements. All must pay IOLTA accounts no less than the highest interest rate or dividend generally available to their non-IOLTA customers on comparable accounts.

Financial institutions may only deduct “allowable reasonable fees” from IOLTA interest which include per check charges, per deposit charges, a fee in lieu of a minimum balance, federal deposit insurance fees, sweep fees and a reasonable administrative or maintenance fee. Any fees and service charges other than allowable reasonable fees shall be the sole responsibility of, and may only be charged to, the lawyer maintaining the IOLTA account. Examples of such fees include cost of checks, wire transfer fees, and overdraft fees. Some banks charge these fees to the lawyer while other banks waive these fees.

See links on left to Statutes, Rule, and Practice Book Selections:

Connecticut Practice Book, Rules of Professional Conduct, Rule 1.15: The Rules of Professional Conduct, Rule 1.15 Safekeeping Property, provides lawyers with a framework for handling their clients’ funds. Attorneys are responsible for maintaining and monitoring their clients’ trust accounts properly.

Connecticut Practice Book, Superior Court General Provisions, Sec. 2-27 – 2-28: The Rules of the Superior Court relate to the admissions, qualifications, practice and removal of attorneys. Superior Court General Provisions, Sec. 2-27 stipulates that all clients’ funds accounts must be registered annually with the Judicial Branch and that these accounts are subject to random audits by the Statewide Grievance Committee. Sec. 2-28 delineates overdraft notification required by approved banks.

CBF's IOLTA team assists with account setup, reporting, and rate comparability compliance.
📞 Contact: (860) 722-2494
📧 Email: iolta@ctbarfdn.org