Can I hold escrow funds in an IOLTA account in another state?
Every state has a program that is similar to New York’s IOLA Fund. Typically, they are known by the acronym “IOLTA” or “Interest On Lawyer Trust Accounts.” Since an IOLA account is an escrow account, the answer would depend on the nature of the matter as it relates to the funds held in escrow. If it would be appropriate to hold the funds in escrow in another state when all relevant considerations are taken into account, then there is no requirement that they should be placed in a New York IOLA account.
Related Questions
- How does a lawyer or law firm determine which client funds should be deposited in an IOLTA account and which should be invested on behalf of individual clients?
- When the savings bonds program stop, when will funds remaining in the escrow account be refunded?
- When are funds disbursed from the rehab escrow account?
