Jurisdiction Reference
Delaware IOLTA
Program: Delaware Bar Foundation IOLTA Program
Delaware Rules 1.15 and 1.15A require private-practice lawyers to segregate client property, limit lawyer funds for bank charges to $2,000 with separate accounting, and preserve complete records for five years. IOLTA-eligible funds use a pooled account at a Delaware-physical-presence institution approved by the Bar Foundation and also approved by the Lawyers’ Fund for Client Protection, with exact Rule 1.15A titling, a Delaware lawyer signatory, rate comparability, Foundation remittance, enrollment within 30 days, overdraft reporting, and a one-year process for unclaimed or unidentifiable funds.
General information, not legal advice — always confirm against the official Delaware sources below.
Ask about Delaware's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Delaware's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Delaware trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregation and designated account | Hold client and third-party property separate in an account designated solely for funds connected with Delaware law practice. | Del. R. Prof. Conduct 1.15(a) |
| Two-thousand-dollar lawyer-fund cap | Lawyer funds reasonably sufficient for institution charges may be deposited, but may not exceed $2,000 and must be separately stated and accounted for. | Rule 1.15(a) |
| Five-year record preservation | Keep complete records of account funds and other property for five years after termination of the representation. | Rule 1.15(a) |
| Mandatory private-practice IOLTA | A Delaware private-practice lawyer holding IOLTA-eligible funds must maintain them in a pooled IOLTA account unless a reasonable client-benefit determination applies. | Rules 1.15(f)-(g); DBF guidance |
| Reasonable net-income determination | Decide whether funds can earn income for the client or third person beyond the cost of securing and distributing it; nominal or short-term funds are IOLTA-eligible. | Rule 1.15(f); DBF FAQ |
| Dual-approved Delaware institution | Use an LFCP-approved Rule 1.15A depository; for pooled IOLTA, use a DBF-approved institution with a physical presence in Delaware. | Rules 1.15A and 1.15(g); LFCP |
| Exact Rule 1.15A account title | Include an approved title such as “Rule 1.15A Attorney Trust Account,” “1.15A Trust Account,” “Rule 1.15A Attorney Escrow Account,” or “1.15A Escrow Account.” | Rule 1.15A(a) |
| Delaware lawyer signatory | Ensure a Delaware attorney is listed as a signatory and the account is in the registered name of the attorney or law firm. | DBF attorney guidance |
| Comparable rate and Foundation remittance | Obtain interest-rate comparability, associate the Foundation tax ID, and direct net interest and required reporting to the Delaware Bar Foundation. | Rule 1.15; DBF IOLTA guidance |
| Enrollment within 30 days | Submit the Delaware Bar Foundation Notice of Enrollment within 30 days after opening or converting the account; file new enrollment for reportable name or account changes. | DBF attorney guidance |
| Overdraft notification | Use an LFCP-approved institution that reports insufficient-funds instruments or electronic debits to the Office of Disciplinary Counsel whether honored or not. | Rule 1.15A; LFCP |
| Unclaimed or unidentifiable funds | After reasonable efforts and at least one year, remit qualifying unclaimed or unidentifiable Rule 1.15A trust funds to the Lawyers’ Fund for Client Protection. | Rule 1.15(d)(12)(F), effective 2025 |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Delaware Lawyers’ Rules of Professional Conduct — Rules 1.15 and 1.15A
Current Supreme Court rules for safeguarding, IOLTA, approved account titles, overdraft notice, records, and 2025 amendments.
OpenDelaware Bar Foundation — Resources for Attorneys
Current detailed instructions for IOLTA eligibility, opening, title, tax ID, signatory, enrollment, changes, certification, banks, and closure.
OpenDelaware Lawyers’ Fund — Approved Financial Institutions
Official LFCP list and requirements for Rule 1.15A overdraft-approved depositories and DBF-eligible IOLTA institutions.
OpenDelaware Lawyers’ Fund — Unclaimed and Unidentifiable Funds
Official 2025 process for reasonable efforts, one-year holding, remittance, documentation, and later owner recovery.
OpenNotes
- Delaware has two overlapping institution approvals: LFCP approval for Rule 1.15A trust and escrow accounts, and DBF IOLTA eligibility with a physical Delaware presence for pooled IOLTA.
- Exact account titling matters. Use a Rule 1.15A title accepted by the rules and add IOLTA identification for the pooled program as directed by the bank and Foundation.
- This page is general information, not legal advice. Confirm current Supreme Court rules and forms and consult ODC, LFCP, or the Delaware Bar Foundation for specific questions.
Delaware — Frequently asked
Common questions for Delaware trust accounts. General information only — verify against the official sources above.
Who must maintain Delaware IOLTA?
A Delaware lawyer in private practice who holds IOLTA-eligible client or third-party funds must maintain a pooled IOLTA account unless the funds reasonably belong in a client-benefit account.
Which funds are IOLTA-eligible in Delaware?
Funds are IOLTA-eligible when they are nominal or short-term and cannot earn income for the client or third person in excess of the costs of securing and distributing that income.
What if funds can earn net income for the owner?
Use a separate interest-bearing trust account or permitted allocation arrangement that credits the earnings to the client or third person and documents the calculation and costs.
How much lawyer money may be kept in a Delaware trust account?
Only funds reasonably sufficient for institution charges, capped at $2,000. That amount must be separately stated and accounted for like client funds.
Which institutions may hold Delaware trust accounts?
All Rule 1.15A trust and escrow accounts require an LFCP-approved institution. IOLTA additionally requires a DBF-approved institution with a physical presence in Delaware.
How must a Delaware trust account be titled?
Use one of Rule 1.15A’s prescribed trust or escrow titles and, for IOLTA, include the program designation directed by the Foundation and bank.
Must a Delaware lawyer be on the account?
Yes. Delaware Bar Foundation guidance states that a Delaware attorney must be listed on the Delaware IOLTA account, which is opened in the registered attorney or firm name.
What rate should a Delaware IOLTA account receive?
The institution must provide interest-rate comparability: no less than the rate paid on its comparable accounts when the IOLTA account meets the same qualifications.
Who receives Delaware IOLTA interest?
The bank uses the Foundation tax ID and remits net interest directly to the Delaware Bar Foundation with the required account information and statements.
When is the Notice of Enrollment due?
Submit the current Foundation enrollment form within 30 days after opening or converting the IOLTA account. Keep copies and use a new form for specified firm-name or account changes.
What happens after an overdraft or insufficient-funds debit?
The LFCP-approved institution reports the debit or instrument to the Office of Disciplinary Counsel whether paid or returned. Investigate, correct, document, and cooperate promptly.
Where do advance fees and costs go?
Amounts that remain client property are held in trust until earned or incurred. Withdraw only supported amounts and keep any disputed lawyer portion separate.
How long are Delaware trust records preserved?
Rule 1.15 requires complete records of account funds and other client or third-party property for five years after the representation terminates.
What happens to unclaimed or unidentifiable funds?
After reasonable efforts and at least one year, Rule 1.15(d)(12)(F) requires qualifying funds to be remitted to LFCP with the prescribed documentation; a later-located owner may reclaim them.
How should a Delaware IOLTA account be closed?
Stop new activity, account to each owner, resolve disputed and residual balances, handle unclaimed funds under the 2025 rule, clear items, notify DBF and LFCP as needed, reconcile, and retain records.