Jurisdiction Reference
Connecticut IOLTA
Program: Connecticut Bar Foundation IOLTA Program
Current Connecticut guidance on pooled IOLTA and client-benefit accounts, dual bank eligibility and overdraft approval, annual pooled-account registration, authorized signers, monthly trial balances, quarterly reconciliation, random audits, seven-year records, and abandoned funds.
General information, not legal advice — always confirm against the official Connecticut sources below.
Ask about Connecticut's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Connecticut's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Connecticut trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregate fiduciary funds | Maintain client and third-person funds separately from the lawyer's personal and business funds in one or more accounts that accurately reflect the status and ownership of all funds held in a fiduciary capacity. | Connecticut Rule of Professional Conduct 1.15; Practice Book § 2-27(a) |
| Maintain Connecticut trust accounts unless consent permits otherwise | A Connecticut-admitted lawyer with an office in the state must maintain the trust account in Connecticut unless the affected client or third person consents to another location. | Connecticut Rule 1.15(b) |
| Use IOLTA for pooled nominal or short-term funds | When pooling funds of multiple clients or third persons that cannot earn net income for their owners, use an IOLTA account. Connecticut does not require an IOLTA account merely because a lawyer is admitted if the lawyer does not pool such funds. | Connecticut Rule 1.15; Judicial Branch Trust Account FAQ |
| Use a client-benefit account when net income is possible | Place funds in an interest-bearing account for the client or third person when the amount and expected duration can produce net income after costs. Consider amount, duration, rates, fees, tax-reporting costs, and the institution's ability to calculate and pay income. | Connecticut Rule 1.15(h) |
| Use both an eligible and approved institution | An IOLTA institution must be eligible under Connecticut Bar Foundation program requirements and approved by the Statewide Grievance Committee for trust-account overdraft reporting. | Connecticut Rule 1.15; Practice Book § 2-28; CBF Attorney Resources |
| Complete the IOLTA/IOTA enrollment process | Open the account in the depositor lawyer or firm name, select the Connecticut IOLTA or IOTA program, complete the official enrollment form, give it to the participating institution, and send the required copy to the Connecticut Bar Foundation. | CBF IOLTA/IOTA Enrollment Form |
| Limit lawyer funds in trust | Do not commingle lawyer funds with entrusted funds except sums necessary for service charges or obtaining a fee waiver. Connecticut audit guidance generally treats no more than $500 as the outside de minimis amount without a documented need. | Connecticut Rule 1.15; Statewide Grievance Committee audit guidance |
| Restrict account authority | Only a lawyer admitted in Connecticut or a person acting under the lawyer's direct supervision should be an authorized signer or authorized to transfer funds from an IOLTA account. | CBF Attorney Resources; Connecticut Rule 1.15 |
| Report pooled trust accounts annually and upon change | Register annually with the Statewide Grievance Committee the required office and financial-institution information for every account holding funds of more than one client, and update the registration when covered account or office information changes. | Practice Book § 2-27(d) |
| Maintain receipt, disbursement, and client ledgers | Keep a general receipts and disbursements journal with a running balance and a separate ledger for each client or third person showing all receipts, disbursements, and the running individual balance. | Connecticut Rule 1.15(i)(1)-(2) |
| Maintain bank and electronic-transfer documentation | Retain checkbooks, statements, canceled or voided checks, deposit support, and records of electronic transfers identifying the authorizer, date, recipient, source account, and completion confirmation. | Connecticut Rule 1.15(i) |
| Prepare monthly trial balances | Prepare and retain a monthly list of all clients or third persons with open balances and the amount held for each, together with the total that must agree with the trust account records. | Connecticut Rule 1.15(i)(9) |
| Perform written reconciliation at least quarterly | At least quarterly reconcile the adjusted bank statement, general receipts and disbursements journal, individual client ledgers, and monthly trial balance so all balances agree; investigate and cure every difference. | Connecticut Rule 1.15(i)(9); Judicial Branch reconciliation guidance |
| Retain records seven years and cooperate with audit | Preserve the required trust records for seven years after the last transaction or termination of the representation as applicable and make them available for authorized Statewide Grievance Committee review or random audit. | Connecticut Rule 1.15(i); Practice Book §§ 2-27 and 2-28 |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Connecticut Rules of Professional Conduct, Practice Book
Official Connecticut Practice Book containing Rule 1.15 and related attorney trust-account provisions.
OpenConnecticut Judicial Branch Trust Account and Random Audit FAQ
Official guidance on IOLTA, bank eligibility, account location, records, reconciliation, registration, audits, and old balances.
OpenConnecticut Practice Book § 2-27 Materials
Official client-funds, recordkeeping, quarterly reconciliation, annual registration, and seven-year retention provisions.
OpenConnecticut Bar Foundation Attorney Resources
Official IOLTA/IOTA guidance on account choice, institutions, signers, lawyer funds, opening, and closure.
OpenConnecticut IOLTA/IOTA Enrollment Form
Official secure enrollment workflow and account instructions for lawyers and law firms.
OpenConnecticut Eligible Financial Institutions
Official Connecticut Bar Foundation institution eligibility and program information.
OpenNotes
- Connecticut distinguishes CBF eligibility from Statewide Grievance Committee approval. An IOLTA institution must meet the Foundation's rate and program requirements and the Committee's overdraft-reporting requirements.
- Connecticut requires monthly trial balances but written full reconciliation at least quarterly. The adjusted bank balance, general journal, and total individual-ledger balances must agree.
- Unlike many states, official Connecticut guidance says IOLTA is not required merely because a lawyer handles a single client's funds; the IOLTA trigger is the pooling of nominal or short-term funds that cannot earn net income for their owners.
Connecticut — Frequently asked
Common questions for Connecticut trust accounts. General information only — verify against the official sources above.
Does every Connecticut lawyer need an IOLTA account?
No. An IOLTA account is needed when the lawyer chooses to pool nominal or short-term funds of multiple clients or third persons. A lawyer who does not receive or pool such funds need not open one solely because of admission.
Which funds belong in Connecticut IOLTA?
Pooled client or third-person funds that cannot earn net income for their owner after considering amount, expected duration, rates, costs, and administrative capability belong in IOLTA.
When should a separate client-interest account be used?
Use one when the funds can earn net income for the client or third person. The lawyer should document the good-faith decision and reassess it at reasonable intervals if circumstances change.
Where must a Connecticut lawyer keep the trust account?
A Connecticut-admitted lawyer with a Connecticut office generally keeps it in Connecticut unless the client or third person consents to another location.
What is the difference between an eligible and approved institution?
The Connecticut Bar Foundation determines IOLTA eligibility, including rate requirements. The Statewide Grievance Committee approves institutions that agree to trust-account overdraft reporting. An IOLTA bank must satisfy both.
How is a Connecticut IOLTA account opened?
Select an eligible and approved institution, complete the CBF IOLTA/IOTA enrollment form, establish the account in the lawyer or firm name using program instructions, give the bank its form, and send the required copy to CBF.
Who may sign or transfer funds?
A Connecticut-admitted lawyer or a person acting under that lawyer's direct supervision. The supervising lawyer remains responsible for controls, authorization, and the audit trail.
May the lawyer keep personal funds in trust?
Only the amount necessary for account service charges or a fee waiver. Connecticut audit guidance generally expects a de minimis amount and identifies $500 as the usual upper boundary absent a documented reason.
Must pooled trust accounts be registered?
Yes. Practice Book § 2-27(d) requires annual registration of covered accounts holding funds of more than one client and updates when specified office or account information changes.
What belongs in the general journal?
Every deposit and withdrawal, with date, source or payee, description or purpose, amount, and a running total account balance.
What belongs in each client ledger?
All receipts and disbursements for that client or third person, with dates, sources or payees, purposes, amounts, and a running individual balance.
What is a monthly trial balance?
A list of every client or third person with an open balance as of the selected date, the amount held for each, and a total. That total is used in the trust-account reconciliation.
How often must Connecticut trust accounts be reconciled?
At least quarterly, using the bank statement, general journal, individual ledgers, and monthly trial balances. More frequent monthly reconciliation is prudent for active accounts.
What balances must agree?
The adjusted bank balance after outstanding checks and deposits in transit, the general receipts and disbursements journal balance, and the total of all individual client-ledger balances.
How long must Connecticut trust records be kept?
Seven years after the last transaction performed for the client or after termination of the representation, as the governing provision applies.
What happens after an overdraft notice?
The approved institution reports it to the Statewide Grievance Committee. The lawyer should immediately review all records, identify the affected client balances and cause, correct the problem, and provide requested documents.
Can Connecticut randomly audit a trust account?
Yes. The Statewide Grievance Committee conducts random and cause-based audits. Lawyers must maintain complete records and make them available when properly requested.
How should disputed funds be handled?
Keep the disputed amount in trust, distribute undisputed amounts, document each claimant's asserted interest, and take reasonable steps to resolve the dispute without using the funds for another purpose.
What happens to very old unidentified or unclaimed funds?
Continue tracking the funds in a separate ledger and make documented efforts to locate the owner. Connecticut guidance indicates that, after the statutory period—often seven years—the funds may be reported and delivered as abandoned fiduciary property under Connecticut law.
How should a Connecticut IOLTA account be closed?
Reconcile the account, resolve client and unidentified balances, clear outstanding items, work with the bank on the CBF closing report, update pooled-account registration, obtain the final statement, and preserve records for seven years.