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What effect does COLTAF participation have on clients?

April 26, 2017clients coltaf participation

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What effect does COLTAF participation have on clients?

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A. COLTAF has no effect on clients. When no interest is earned on funds in lawyer trust accounts which are nominal or short-term, no one benefits except the financial institution. The ABA’s Standing Committee on Ethics and Professional Responsibility in Formal Opinion 348 (1981) approving lawyer participation in programs like COLTAF found: “The practical effect is to shift a part of the economic benefit from depository institutions to tax-exempt organizations. There is no economic injury to any client.