Our Programs
IOLTA Guidance & FAQ
IOLTA Program Rules & Guidance
Attorneys and banks participating in the Arkansas IOLTA Program are required to follow certain rules and procedures set by the Arkansas Supreme Court. You will find the core legal and professional standards that govern IOLTA accounts, along with a detailed FAQ covering common questions about compliance, setup, exemptions, and more.
The primary rule governing attorney trust accounts in Arkansas. Rule 1.15 establishes requirements for how lawyers must hold and manage client funds, including the obligation to maintain IOLTA accounts for nominal or short-term deposits, overdraft reporting requirements, record-keeping standards, and procedures for handling unclaimed or unidentifiable funds. Attorneys may deposit up to $500 of their own funds into an IOLTA account solely to cover bank service charges or meet minimum balance requirements. All Arkansas attorneys must certify compliance with this rule annually.
Defines key terms used in Rule 1.15, including what qualifies as an eligible institution, an IOLTA account, and an interest-bearing trust account. Sets the standards financial institutions must meet to participate in the IOLTA Program, including interest rate comparability requirements, restrictions on permissible fees, prohibition on negative netting, and monthly electronic reporting and remittance obligations. Adopted and effective November 5, 2015.
Establishes the overdraft notification procedures for banks participating in the IOLTA Program. Requires all participating financial institutions to file an Attorney Trust Account Overdraft Reporting Agreement with the Office of Professional Conduct and to report overdraft events in a specified format and within specific timeframes. Also sets out record-keeping requirements for attorneys and the process for approval, revocation, and reinstatement of financial institutions as approved depositories for attorney trust accounts.
Issued July 25, 2016 in response to a question from the State Auditor about whether unclaimed funds in a lawyer’s trust account should be turned over to the Arkansas Access to Justice Foundation under Rule 1.15 or escheated to the state under the Arkansas Unclaimed Property Act. Attorney General Leslie Rutledge concluded that Rule 1.15 governs and that funds must be paid to the Foundation when the conditions of the rule have been met, as the Supreme Court’s authority to regulate attorney conduct takes precedence over the legislative Act.
A comprehensive guide for attorneys and financial institutions participating in the Arkansas IOLTA Program, last updated May 2025. Covers program history, definitions, attorney participation and compliance requirements, account setup procedures, FDIC insurance, IRS reporting, credit card and debit card guidance, unclaimed funds procedures, record-keeping requirements, and detailed instructions for banks on interest rates, fees, reporting, and remittance. Recommended reading for anyone setting up or managing an IOLTA account.
Preguntas frecuentes
About the Program
The IOLTA Program was established in 1984 by the Arkansas Supreme Court to use interest earned on lawyer trust accounts to fund legal aid, public interest initiatives, and legal education. The program is administered by the Arkansas Access to Justice Foundation.
No. The program only collects interest from trust deposits that are small or held for a short time — deposits that would not generate enough interest to meaningfully benefit the client directly.
The Foundation distributes funds to organizations that support its mission of increasing access to justice, including civil legal aid providers and the Arkansas Access to Justice Commission, to support free legal services and improvements to the justice system.
Attorney Requirements and Compliance
Any Arkansas attorney or law firm that receives or holds client or third-party funds.
Attorneys who do not handle client or third-party funds may qualify for an exemption, including full-time judges, government and military attorneys, in-house counsel, retired or inactive attorneys, and attorneys who primarily practice in another state and comply with that state’s IOLTA rules. Exempt attorneys must still certify their compliance annually with the Clerk of the Arkansas Supreme Court.
All Arkansas attorneys must certify annually to the Clerk of the Arkansas Supreme Court that they have complied with Rule 1.15. If an attorney or law firm has not complied, the matter will be referred to the Supreme Court Committee on Professional Conduct for investigation.
Compliance Statements should be returned along with bar license renewal fees to the Clerk of the Arkansas Supreme Court, 625 Marshall St., Little Rock, AR 72201. Do not send compliance forms to the Foundation. If you have questions about exemption categories or your compliance status, IOLTA Program staff can help. If your status changes during the year — such as beginning or ceasing to handle client funds — you may submit an updated Compliance Statement to the Foundation at that time.
Setting Up and Managing Accounts
Visit the Página de formularios IOLTA to download the New IOLTA Account Agreement. Bring the form to your bank and ask a representative to complete the account confirmation section once the account is established. The account must be interest-bearing and set up using the Foundation’s Tax ID Number. Once complete, submit a copy of the paperwork to the Foundation by email or fax to 501-682-9415. For questions about the setup process, contact the IOLTA Program at 501-492-7188.
Client funds must be held in a trust account in the state where the lawyer’s office is located, or elsewhere with the client’s consent. An attorney whose office is outside Arkansas may establish a trust account for Arkansas clients in another state if the institution qualifies as an eligible institution under Rule 1.15, is approved by the Office of the Committee on Professional Conduct, and remits interest to the Arkansas IOLTA Foundation. If uncertain, attorneys should obtain client consent before selecting a financial institution.
Arkansas Rule of Professional Conduct 1.15 requires attorneys to keep client funds in a separate trust account, deposit funds into interest-bearing accounts, and ensure the interest benefits either the client or the IOLTA Program. For larger or long-term funds, attorneys should place funds in a separate interest-bearing account where the interest belongs to the client.
Client funds cannot be deposited into the firm’s operating account. Credit card transactions should not be linked directly to an IOLTA account due to merchant fees and potential chargebacks. Attorneys should use merchant services that deposit client payments into IOLTA accounts while deducting transaction fees from the firm’s operating account.
Interest, Ethics, and Banking Questions
No. It is unethical for an attorney to personally benefit from interest earned on client funds.
No. The program only collects interest from nominal or short-term deposits that would not generate significant earnings for individual clients.
When the deposit amount is large enough and the duration long enough that the expected interest earnings would exceed the administrative costs of maintaining a separate account, the funds must be placed in a separate account where the interest belongs to the client.
Attorney discretion applies. If the expected interest earnings on a deposit exceed the administrative costs, the funds must be placed in a separate account benefiting the client.
Yes. Attorneys should post a notice about IOLTA participation in their office and include a disclosure in engagement agreements.
There are none for attorneys or clients. According to IRS Revenue Ruling 81-209, interest earned on pooled client funds remitted to the Foundation is not includable in the gross income of either the client or the attorney. The Foundation’s Tax ID Number is used for reporting, and interest is paid directly to the Foundation by the financial institution.
Attorneys who accept credit card payments should be aware that credit card transactions may be subject to a 28% withholding penalty if the name on the credit card merchant services account does not exactly match the name associated with the tax ID on file with the IRS. Unlike an IOLTA account, a firm’s credit card merchant services account should use the firm’s own tax ID number.
Bank Participation and Client Protections
No. However, most Arkansas banks participate in the IOLTA Program and often waive service fees to support access to justice. Find participating banks on the Where to Bank page.
You must move your trust account to a participating bank. A list of approved IOLTA banks is available on the Where to Bank page.
Yes. Interest rates and service charges vary from bank to bank and even among branches. Preferred IOLTA Banks pay competitive interest rates and waive all fees, generating more funding for civil legal aid at no cost to attorneys. You can support the program’s mission by banking with a Preferred IOLTA Bank or encouraging your bank to contact us about becoming one. See the Where to Bank page for a current list.
FDIC coverage applies per client, per financial institution, up to $250,000. This includes both attorney-held client funds and any other personal deposits the client holds at the same institution.
Attorney involvement is minimal after initial setup. There are no direct costs from the Foundation, though attorneys are responsible for check printing, wire transfers, and any overdraft fees.
Unclaimed Funds
Under Rule 1.15(c), if a lawyer cannot locate the client after two years of reasonable efforts, they must remit the unclaimed funds to the Arkansas Access to Justice Foundation and provide records to both the Foundation and the Office of Professional Conduct. If the client is located within two years, the Foundation will return the funds. Visit the IOLTA Forms page for the necessary forms.
Still Have Questions?
Contact Tameka Parker, IOLTA Program Manager, at 501-492-7188 or email Tameka.
Español de México 
English