Free compliance check
Trust Account Reconciliation Checklist by State | CaseLedge
Verify your law firm's IOLTA reconciliation process against your state bar's specific trust accounting rules in under two minutes.
Mismanaging a client trust account is one of the fastest ways for an attorney to face state bar discipline. Every US jurisdiction requires lawyers to hold client funds in a separate IOLTA or trust account, and most state bars now require some form of three-way reconciliation on a fixed schedule.
This validator walks through the trust account reconciliation requirements that apply in your state. Select your jurisdiction below to confirm whether your current process meets the documentation, frequency, and retention rules enforced by your state bar.
The checklist is not legal advice. It is a starting point for solos, small firms, and bookkeepers who want a structured way to compare internal practice against published state rules.
Why use itBuilt for the way law firms actually work
Jurisdiction-aware rules
Each checklist reflects the actual reconciliation cadence and retention period required by your state bar.
Required vs recommended
Separates hard disciplinary rules from best practice guidance so you know what is mandatory.
Audit-ready output
Generates a clean compliance summary you can save before an internal review or random audit.
Updated for CTAPP and IOLTA
Includes recent state programs like California CTAPP and ARDC overdraft notification requirements.
Instant results
No account, no email, no waiting. Pick a state, check boxes, see your gaps immediately.
Completely free
Built for solos and small firms who cannot justify a dedicated trust accounting consultant.
ProcessHow it works
- 01 Select your state
Choose the jurisdiction where your firm holds its IOLTA or client trust account from the dropdown.
- 02 Review applicable rules
The checklist loads the actual reconciliation, retention, and reporting requirements published by that state bar.
- 03 Check off current practices
Mark each rule your firm currently follows so the validator can identify gaps in your process.
- 04 Review the gap summary
See which required rules remain unmet and prioritize fixes before your next reconciliation cycle.
CoverageWhat's included
- Reconciliation frequency requirements by state
- Record retention periods from five to seven years
- Client subsidiary ledger requirements
- Overdraft notification and bank approval rules
- Annual certification and registration deadlines
- Commingling and signatory restrictions
- Disbursement and withdrawal limitations
ContextWhy this matters
Trust accounting violations are among the most common reasons US lawyers face suspension or disbarment. The ABA's Standing Committee on Client Protection reports that mishandling of client funds accounts for a substantial share of disciplinary actions every year, and most violations stem from poor recordkeeping rather than intentional theft.
State rules differ in ways that matter. California requires monthly three-way reconciliation and annual CTAPP registration. New York and Illinois mandate seven year record retention. Florida requires annual trust accounting certification on the Bar fee statement. A solo who relocates or expands across state lines can easily miss a deadline simply because the prior state's rules were different.
This validator is designed to surface those differences quickly. It will not replace a CPA or ethics counsel, but it gives a firm a structured snapshot of where its current process stands against the published rule. For most small firms, that snapshot is the difference between catching a gap during a quiet Tuesday and explaining it to a state bar investigator.
Q&AFrequently asked
- It is a structured list of the steps a law firm must perform to confirm that its client trust or IOLTA account balances match the bank, the firm's books, and each individual client ledger. State bars require this process on a recurring schedule and many require written documentation.
- Yes. The validator is free, requires no signup, and stores no information. You can run it as many times as needed for any supported state.
- It is built for solo attorneys, small firm partners, legal bookkeepers, and office managers who handle IOLTA reconciliation. It is also useful for new associates being trained on trust accounting procedures.
- Practice management and accounting platforms automate the bookkeeping but do not tell you whether your process matches state bar rules. This validator focuses specifically on rule compliance, not transaction entry.
- At minimum, run it after any change in firm staffing, software, banking relationship, or state of practice. Many firms also run it as part of their annual trust accounting review or before the state bar's annual compliance deadline.
- No. The checklist summarizes publicly available state bar rules but is not legal advice. For specific compliance questions, consult ethics counsel or your state bar's hotline.
- The validator covers states with the largest attorney populations. If your state is not listed, the closest equivalent is usually the ABA Model Rule 1.15 framework, which most states have adopted with variations.
- Failing to reconcile monthly, allowing client ledgers to go negative, withdrawing earned fees before invoicing, retaining records for fewer years than required, and using ATM or cash withdrawals from trust.