Jurisdiction Reference
Alaska IOLTA
Program: Alaska Bar Foundation IOLTA Program
Alaska uses an IOLTA election system under Professional Conduct Rule 1.15. Unless a lawyer or firm elects not to participate, nominal or short-term client funds are held in an interest-bearing insured depository account for the Alaska Bar Foundation; funds reasonably expected to produce more than $100 in interest cannot be placed in IOLTA and larger or longer-held funds should benefit the client. Each lawyer certifies participation status annually, reports election changes in writing, clearly identifies trust accounts, submits the Bar Rule 15.1 confidentiality waiver, and preserves detailed records for at least five years.
General information, not legal advice — always confirm against the official Alaska sources below.
Ask about Alaska's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Alaska's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Alaska trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregation and safekeeping | Keep client and third-party property separate from lawyer property in one or more compliant trust accounts and safeguard noncash property as a fiduciary. | Alaska R. Prof. Conduct 1.15(a) |
| Future fees and expenses | Deposit funds received for future fees and expenses in a client trust account and withdraw only as fees are earned or expenses incurred. | ARPC 1.15(c) |
| IOLTA participation election | Unless a valid election not to participate applies, maintain an interest-bearing insured depository account for nominal or short-term client funds. | ARPC 1.15(f)-(g) |
| Nominal or short-term limitation | Deposit only client funds that are nominal or expected to be held briefly in IOLTA; do not use it as the default for larger or long-term funds. | ARPC 1.15(f)(2) |
| One-hundred-dollar interest threshold | Funds reasonably expected to generate more than $100 in interest may not be placed in the Alaska IOLTA account. | ARPC 1.15(f)(2) |
| Client-benefit interest | Place larger or longer-held funds in an interest-bearing account for the client when they can generate a practical return. | ARPC 1.15; Alaska Bar Foundation guidance |
| Insured depository and Foundation earnings | Use an insured depository, deny the lawyer any claim to earnings, and direct IOLTA interest to the Alaska Bar Foundation. | ARPC 1.15(f) |
| Annual dues certification | Each lawyer annually states whether the lawyer or firm participates in IOLTA, elects not to participate, or maintains no trust account. | ARPC 1.15(g); Alaska Bar guidance |
| Written election changes | A lawyer or firm may change its prior election at any time by notifying the Alaska Bar Association in writing. | ARPC 1.15(g) |
| Trust title and confidentiality waiver | Clearly identify accounts as “trust” or “escrow,” inform the institution of their purpose, and submit the Bar Rule 15.1 Waiver of Confidentiality. | Alaska Bar R. 15.1 |
| Five-year detailed records | Preserve checkbooks, canceled items, vouchers, ledgers, journals, closing statements, accountings, and receipt and disbursement details for at least five years. | Alaska Bar R. 15.1(a)(2) |
| Overdrafts, delivery, disputes, and closure | Use a reporting institution, promptly notify and deliver funds due, retain disputed portions, reconcile regularly, and close only after final accounting and record preservation. | ARPC 1.15; Bar R. 15.1 |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Alaska Rules of Professional Conduct — Rule 1.15
Official current rule for segregation, future fees, IOLTA election, insured depositories, the $100 interest threshold, certification, delivery, and disputes.
OpenAlaska Bar Rule 15.1 — Trust Funds and Overdraft Notice
Official Bar page linking the rule, confidentiality waiver, overdraft agreement, approved institutions, and compliance guidance.
OpenAlaska Bar Foundation — IOLTA
Program materials, forms, election notice, participating institutions, Foundation information, and explanation of client-benefit versus IOLTA funds.
OpenAlaska IOLTA Notice of Election — 2026
Current new-member form and instructions for individual election filing, firm accounts, and the one-IOLTA-account rule.
OpenNotes
- Alaska permits an election not to participate, but that election does not alter Rule 1.15 duties to segregate, safeguard, account for, deliver, and resolve disputes over client property.
- The $100 rule is a hard placement limit in Rule 1.15(f)(2): funds reasonably expected to produce more than $100 in interest may not be deposited in IOLTA.
- This page is general information, not legal advice. Confirm current Supreme Court and Bar rules and consult Bar Counsel or Alaska Bar Foundation staff for specific questions.
Alaska — Frequently asked
Common questions for Alaska trust accounts. General information only — verify against the official sources above.
Is Alaska IOLTA mandatory?
Alaska uses an election system. Unless the lawyer or firm has elected not to participate under Rule 1.15, nominal or short-term funds are placed in a qualifying IOLTA account.
Which funds belong in Alaska IOLTA?
Only client funds that are nominal in amount or expected to be held briefly and cannot practically earn net interest for the client belong in IOLTA.
What is Alaska’s $100 interest rule?
Funds reasonably expected to generate more than $100 in interest may not be deposited in IOLTA. They require a client-benefit interest arrangement consistent with fiduciary duties.
What if client funds are large or held for a long time?
Place them in a separate interest-bearing account for the client when the expected return is practical, and treat both principal and earnings as client property.
Where do future fees and expenses go?
Funds received for future fees and expenses are deposited in a client trust account and withdrawn only as fees are earned or expenses incurred.
How much lawyer money may remain in trust?
Only the amount necessary to pay bank service charges. Keep an accurate record distinguishing that limited lawyer balance from all client and third-party balances.
What does each lawyer certify annually?
On the annual dues notice, each lawyer states whether the lawyer or firm maintains IOLTA, elects not to maintain it, or does not maintain a trust account.
How is an IOLTA election changed?
Notify the Alaska Bar Association in writing at any time. Each lawyer files the required election information even when relying on a shared firm account.
How many IOLTA accounts does an Alaska participant need?
The current election form says a participant needs only one IOLTA account and need not convert every client trust account, provided all funds are assigned to the correct account type.
How must an Alaska trust account be identified?
Clearly label it as a “trust” or “escrow” account and take the steps necessary to inform the institution of its fiduciary purpose and regulatory status.
What is the Bar Rule 15.1 Waiver of Confidentiality?
Lawyers subject to Rule 1.15 sign and submit the Bar’s waiver so the financial institution can provide trust-account information and overdraft notices required by Bar Rule 15.1.
What happens after an overdraft or insufficient-funds item?
The reporting institution notifies the Bar as required. Investigate immediately, protect unrelated clients, correct any shortage, preserve records, and cooperate with Bar Counsel.
How are disputed funds handled?
Keep the disputed portion in trust, promptly distribute undisputed amounts, notify the client or third person of receipts, and pursue prompt resolution with a full accounting.
How long must Alaska trust records be kept?
Bar Rule 15.1 requires detailed account records for at least five years after the representation ends, including ledgers, journals, checks, vouchers, closings, and accountings.
How should an Alaska IOLTA account be closed?
Stop new activity, account to all owners, resolve disputes and residual balances, clear outstanding items, notify the Bar and Foundation as required, reconcile finally, and retain records.