980052 | Office of Legal Ethics Counsel & Advisory Committee of the Supreme Court of Missouri

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Informal Opinion Number: 980052

Rules: 4-1.145; 4-1.15; 4-1.155

Client-Lawyer Relationship

IOLTA Accounts

Reference Note: Rule 4-1.145, Definitions – Safekeeping Property and IOLTA Accounts, was adopted effective July 1, 2013, and amended effective July 1, 2017. Rule 4-1.155, IOLTA Accounts, was adopted effective July 1, 2013. Rules 4-1.145 and 4-1.155 also would govern this Question and should be consulted in addition to Rule 4-1.15 cited in the opinion.

Reference Note: Effective July 1, 2016, subdivision 4-1.15(f) of Rule 4 was repealed and a new subdivision 4-1.15(f) adopted in lieu thereof. This opinion is based on Rule 4-1.15 in effect prior to that date.

Reference Note: Rule 4-1.15 was amended, effective July 1, 2013. This opinion is based on the rule in effect prior to that date. Please see the July 1, 2013 version of Rule 4-1.15.

QUESTION: Attorney obtained a verdict in favor of Attorney´s client and began collection efforts. Attorney has learned that a portion of the judgment has been paid to the Clerk´s office pursuant to garnishments. The money is being held in a non-interest bearing account pending an appeal. Attorney would like to have the money transferred into an interest bearing trust account. Is this ethical?
ANSWER: Under Rule 4-1.15 it would be appropriate for Attorney to place these funds in a separate, interest bearing trust account. Such an account would be a non-IOLTA trust account, and the interest would go to Attorney´s client. Any time Attorney will hold funds, belonging to one client, of any significant amount for an extended period or substantial funds for a shorter period, this approach should be used. The amount of income to be generated, in relation to the costs (bank charges, legal fees, etc.) of maintaining a separate account will be a major factor in determining whether a separate account is appropriate.

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.

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