Free compliance check
IOLTA Rules by State: Free Trust Account Compliance Validator
Check whether your firm meets your state's IOLTA trust account rules in under two minutes.
Every U.S. jurisdiction imposes its own IOLTA (Interest on Lawyers' Trust Accounts) requirements, and the differences are not trivial. California requires monthly three-way reconciliation, New York requires retention of records for seven years, and Texas mandates notification to the State Bar within 30 days of opening a trust account. Missing even one of these rules can trigger discipline.
This validator walks you through the IOLTA rules that apply in your state, including reconciliation frequency, recordkeeping duration, eligible institution requirements, and reporting obligations. Select your state, confirm which rules your firm meets, and see exactly where you stand.
The output is informational only and not a substitute for advice from your state bar or ethics counsel. Use it as a self-audit to surface gaps before a random trust account audit does.
Why use itBuilt for the way law firms actually work
Jurisdiction-aware rules
Each state's reconciliation, recordkeeping, and reporting rules are coded directly from current bar regulations.
Required vs recommended
Clearly separates mandatory disciplinary rules from best practices so you know what is actually at risk.
Audit-ready self check
Surface compliance gaps before a random trust account audit or grievance investigation does it for you.
Plain English explanations
Each rule includes a short description citing the underlying state rule or program requirement.
100% free
No paywall, no trial, no upsell to a paid compliance subscription at the end.
No signup required
Run the check anonymously in your browser; nothing is saved or transmitted to our servers.
ProcessHow it works
- 01 Select your state
Choose your jurisdiction from the supported states to load the applicable IOLTA disciplinary rules.
- 02 Review each rule
Read the short description of each requirement and the underlying authority before checking the box.
- 03 Mark what your firm meets
Honestly indicate which rules your firm currently satisfies based on actual practices, not intent.
- 04 Review your compliance score
See passing count, required rules remaining, and exactly which gaps to remediate first.
- 05 Address gaps and document
Fix any failing required rules and document the remediation in your firm's compliance file.
CoverageWhat's included
- Reconciliation frequency requirements per state
- Recordkeeping retention periods
- Eligible financial institution rules
- Overdraft and dishonored check notification rules
- Client ledger and bookkeeping standards
- Annual registration and reporting obligations
- Required versus recommended rule classification
ContextWhy this matters
Trust account violations are one of the leading causes of attorney discipline in the United States. According to ABA Survey on Lawyer Discipline data, trust account and client funds violations consistently rank in the top categories of public discipline imposed by state bars, often resulting in suspension or disbarment even when no client funds were stolen. Many sanctions stem from technical recordkeeping failures, not theft.
State rules vary in ways that catch out-of-state and multi-jurisdictional firms. California's CTAPP registration, Florida's annual trust compliance certificate, and New York's prohibition on checks payable to cash are easy to miss if you assume the rules in your home state apply everywhere. A trust account audit can be triggered by a single bounced check, a fee dispute, or a random selection by the state bar.
Running a self-check against your state's actual rules is the cheapest insurance available. It takes minutes and identifies exactly which controls need attention before the auditor, the grievance committee, or a malpractice carrier raises the issue.
Q&AFrequently asked
- IOLTA stands for Interest on Lawyers' Trust Accounts. It is a pooled, interest-bearing trust account where lawyers hold nominal or short-term client funds. Interest is remitted to a state IOLTA program that funds legal aid and access to justice initiatives.
- No. While the basic structure is similar, reconciliation frequency, recordkeeping duration, registration requirements, and eligible institution rules differ significantly. California, New York, Texas, Florida, and Illinois each have distinct compliance regimes.
- Yes. The tool is completely free, requires no signup, and does not save your responses. It is provided as an educational resource for U.S. attorneys and law firm administrators.
- Solo practitioners, small firm partners, law firm administrators, bookkeepers, and compliance staff who need a quick way to confirm their trust account practices align with the rules of their jurisdiction.
- No. The validator covers the most commonly cited rules but is not exhaustive. Always cross-reference your state bar's current trust account handbook and consult ethics counsel for borderline situations.
- At least annually, after any change in firm bookkeeping personnel or software, when opening a new trust account, and immediately if you receive an overdraft notice or fee dispute that might trigger review.
- Three-way reconciliation compares three figures that must match: the adjusted bank statement balance, the trust account checkbook or general ledger balance, and the sum of all individual client subsidiary ledger balances.
- Document the gap, remediate it immediately, and create a written procedure to prevent recurrence. For serious gaps such as commingling or missing records, contact ethics counsel before self-reporting.