Informal Opinion Number: 2010-0067

QUESTION: Attorney has an IOLTA account with very little activity. Attorney is maintaining a balance in the account at a level needed to avoid bank charges. The funds in the account are Attorney’s funds. Attorney heard amounts of $200 and $500 discussed at seminars. Attorney has been maintaining a much higher balance than that in order to avoid the bank charges. Is this permissible?

ANSWER: There is no set amount of the attorney’s own money that is permissible for an attorney to place in Attorney’s trust account.  Generally speaking, $200 and $500 are probably too much.  Rule 4-1.15(e) provides:

A lawyer may deposit the lawyer’s own funds in a client trust account for the sole purpose of paying bank service charges on that account, but only in an amount necessary for that purpose.

Attorney should only have Attorney’s own money in the account in amount necessary to pay bank service charges.  It is not permissible to keep a minimum balance of Attorney’s own money in the trust account.  If the bank indicates that Attorney must keep a minimum balance in the IOLTA account, Attorney should contact the IOLTA office at 573-634-8117 to see if they can assist. 

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

To request an Informal Opinion, please visit: http://mo-legal-ethics.org/for lawyers/requesting-an-informal-advisory-opinion/.

© Copyright 2024