Share |

Why IOLTA Matters

Embedded Scribd iPaper - Requires Javascript and Flash Player
WHY IOLTA MATTERS
INTEREST ON LAWYER TRUST ACOUNTS IS CRITICAL TO PROVISION OF LEGAL SERVICES TO THE NEEDY
In 2009, the Nevada Law Foundation – the IOLTA accounts are defined as those accounts tax-exempt foundation which manages Nevada’s set up by a Nevada attorney to hold clients’ funds Interest on Lawyer Trust Accounts (IOLTA) that are nominal in size or to be held for a short program – funded more than $1 million in grants period of time. To be compliant with the IOLTA rule, to groups providing legal services to the needy. lawyers must: Without these funds, many of Nevada’s poor, seniors, victims of domestic violence 1. Place their IOLTA accounts only and children needing protection with a participating financial would not have received the legal institution; and Have questions about services they desperately need. IOLTA compliance? 2. Report compliance with SCR This is why it’s critically 217 on their annual disclosure important for lawyers to carefully Call the state bar’s forms to the state bar; comply with Supreme Court Rule (SCR) 217 – the rule governing 3. Or claim a waiver if they do not (702) 317-1407 or e-mail IOLTA. In 2010, the rule was have a participating institution us at iolta@nvbar.org. changed and now requires attorneys within 20 miles. to create or maintain their IOLTA accounts only at financial In the past month, additional institutions which have agreed to a number of banks have joined the list of participating minimum qualifications, including preferred institutions. For the most recent list, check www. interest rates. nvbar.org > IOLTA > Participating Financial Interest generated from IOLTA is collected by Institutions. In addition to this list, you can also the Nevada Law Foundation and then distributed find the complete text of SCR 217 as well as IOLTA in a competitive grant process among nonprofit enrollment forms. organizations. These organizations, including, but The requirements do not alter long-standing not limited to, the Legal Aid Center of Southern trust account practices within the legal profession. Nevada, Washoe Legal Services and Volunteer For example, a client’s deposit may be set up in a Attorneys for Rural Nevadans, support programs designated account to earn interest for that client that extend civil legal aid and legal information to in any bank approved under SCR 78.5 for nonpeople in Nevada whose access to justice is limited. IOLTA trust funds.
IOLTA hotline at
The Deadline to Report IOLTA Compliance was January 1.
This year, when paying bar fees and submitting annual disclosure forms, all lawyers are required to report that their current trust accounts are compliant with SCR 217 – the rule governing IOLTA. Be sure your accounts are compliant and that you report your compliance accurately for 2011.
January 2011
Nevada Lawyer
7
This document is © 2011 by jsmith22 - all rights reserved.
AttachmentSize
Jan_2011_Why_IOLTA_Matters.pdf119.35 KB