Jurisdiction Reference
Arkansas IOLTA
Program: Arkansas Access to Justice Foundation IOLTA Program
Arkansas Rule of Professional Conduct 1.15 requires lawyers to segregate client and third-party property, deposit advance fees and expenses in trust, and limit lawyer funds in the account to permitted bank-charge amounts. Nominal or short-term funds go to IOLTA at an eligible institution approved for Arkansas reporting and Foundation remittance; client-benefit funds use an appropriate interest-bearing account. Lawyers complete an account agreement, file the annual IOLTA Compliance Statement before March 1, report status and closure changes, and follow special procedures for unclaimed funds after reasonable efforts for at least two years.
General information, not legal advice — always confirm against the official Arkansas sources below.
Ask about Arkansas's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Arkansas's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Arkansas trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregation of property | Hold client, prospective-client, and third-party property separate from lawyer property in identifiable trust accounts. | Ark. R. Prof. Conduct 1.15(a) |
| Account location and consent | Maintain client funds in the state where the lawyer’s office is situated, or elsewhere with the consent of the client or third person and IOLTA eligibility approval. | Rule 1.15(a)(1); AATJ guidance |
| Limited lawyer funds | Do not place lawyer or firm funds in trust except amounts necessary for bank charges or the minimum balance required to waive those charges. | Rule 1.15(a)(1) |
| Advance fees and expenses | Deposit advance legal fees and expenses in trust and withdraw them only as fees are earned or expenses incurred. | Rule 1.15(b)(2) |
| Nominal or short-term IOLTA funds | Place funds unable to earn net interest for their owner because of amount or holding period in a pooled IOLTA account. | Rule 1.15; Administrative Order 22 |
| Client-benefit funds | When funds can generate a practical net return for the client or third person, use an interest-bearing trust arrangement that credits the owner. | Rule 1.15 |
| Eligible approved institution | Use an institution meeting Rule 1.15 and Administrative Order 22 eligibility, approved by the Office of Professional Conduct, and authorized to remit interest to the Foundation. | Rule 1.15; Admin. Order 22 |
| Account agreement and Foundation remittance | Complete the current IOLTA Account Agreement so the institution remits net interest and required information to the Arkansas Access to Justice Foundation. | AATJ IOLTA forms |
| Annual March 1 compliance statement | Complete and return the annual IOLTA Compliance Statement to the Clerk of the Supreme Court before March 1, and update it when status changes. | AATJ IOLTA forms |
| Status and closure changes | Use the Attorney Change of Status form for contact, participation, or closure changes and ensure accrued interest is remitted before closing. | AATJ IOLTA forms and Guidebook |
| Unclaimed or unidentified funds | After reasonable efforts over at least two years, transfer qualifying unclaimed or unidentifiable trust funds and the required report to the Foundation. | Rule 1.15; AATJ guidance |
| Delivery, disputes, records, and reconciliation | Promptly notify and deliver funds due, retain disputed portions, maintain complete client ledgers and bank records, reconcile regularly, and preserve closing documentation. | Ark. R. Prof. Conduct 1.15 |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Arkansas Access to Justice — IOLTA Rules, Guidance and FAQ
Program hub linking Rule 1.15, Administrative Order 22, professional-conduct procedures, unclaimed-fund rules, guidebook, and FAQs.
OpenArkansas Access to Justice — IOLTA Forms
Current account agreement, annual compliance statement, status-change, office-posting, and unclaimed-fund forms with filing instructions.
OpenArkansas IOLTA Program Guidebook
Detailed attorney and financial-institution guidance on accounts, eligibility, remittance, reporting, changes, closures, and unclaimed funds.
OpenArkansas Judiciary — Office of Professional Conduct
Official disciplinary authority administering Rule 1.15 compliance and financial-institution approval with the Supreme Court framework.
OpenNotes
- Arkansas requires the annual IOLTA Compliance Statement to reach the Supreme Court Clerk before March 1; account or participation changes require separate current forms.
- An out-of-state account for Arkansas client funds must still satisfy Arkansas’s eligible-institution approval and interest-remittance rules unless controlling authority provides otherwise.
- This page is general information, not legal advice. Confirm current Supreme Court rules, orders, and forms and consult the Office of Professional Conduct or Arkansas IOLTA staff for specific facts.
Arkansas — Frequently asked
Common questions for Arkansas trust accounts. General information only — verify against the official sources above.
When must an Arkansas lawyer use a trust account?
When holding client, prospective-client, or third-party funds connected with representation, the lawyer must keep them separate in one or more identifiable trust accounts.
Which funds belong in Arkansas IOLTA?
Nominal amounts or funds expected to be held too briefly to produce a net return for their owner belong in the pooled Arkansas IOLTA program.
What if funds can earn net interest for the owner?
Use a separate interest-bearing account or another permitted trust arrangement that credits the earnings to the client or third person and documents all allocations and costs.
Where may an Arkansas trust account be maintained?
Ordinarily in the state where the lawyer’s office is situated. An account elsewhere requires the necessary consent and, for Arkansas IOLTA treatment, an eligible institution approved under Arkansas rules.
How much lawyer money may remain in trust?
Only the amount necessary to cover bank charges or maintain a minimum balance used to waive charges. Personal, operating, and unrelated firm money may not be commingled.
Where do advance fees and costs go?
Advance legal fees and expenses remain client property and must be deposited in trust, then withdrawn only as the lawyer earns fees or incurs the expenses.
How is an Arkansas IOLTA account opened?
The lawyer and eligible financial institution complete the current IOLTA Account Agreement and submit the required copies so the account is enrolled and remittance instructions are established.
Who receives Arkansas IOLTA interest?
The institution remits net interest directly to the Arkansas Access to Justice Foundation, which administers the program and supports civil legal aid and justice-system projects.
What is the annual IOLTA Compliance Statement deadline?
The current program instructions require the completed statement to be returned to the Clerk of the Arkansas Supreme Court before March 1 each year.
When is an Attorney Change of Status form required?
Use it when contact information changes, an IOLTA account closes, participation status changes, or the lawyer moves to another firm or account arrangement.
What must happen before closing an Arkansas IOLTA account?
Ensure accrued interest is remitted to the Foundation, account to every client or third person, resolve outstanding items and residual balances, submit the status form, and retain records.
What happens after an overdraft or shortage?
Investigate immediately, protect unrelated clients, restore any improper shortage, preserve bank and ledger evidence, notify required authorities or program contacts, and cooperate fully.
How are disputed funds handled?
Keep the disputed portion in trust until resolution, promptly deliver undisputed amounts, notify interested persons of receipts, and provide a complete accounting on request.
What records and reconciliations should be maintained?
Keep bank statements and item images, deposit records, receipts and disbursements journals, individual client ledgers, fee support, and timely three-way reconciliations.
What happens to unclaimed Arkansas trust funds?
After reasonable efforts for at least two years to identify or locate the owner, use the current Foundation report and transfer process. Document every search step and amount remitted.