Jurisdiction Reference
Idaho IOLTA
Program: Idaho Law Foundation IOLTA Program
Idaho trust accounts are governed by Professional Conduct Rule 1.15 and Idaho Bar Commission Rules Section XIII. Lawyers handling client or third-party property generally maintain a Bar-approved, federally insured account clearly marked “trust” or “escrow,” use IOLTA by default unless funds can earn net income for the owner or an exemption applies, select an institution with the required overdraft and IOLTA agreements, obtain comparable rates with only allowable fees, remit earnings to the Idaho Law Foundation at least quarterly, certify annually, and report account changes within 30 days.
General information, not legal advice — always confirm against the official Idaho sources below.
Ask about Idaho's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Idaho's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Idaho trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Safekeeping and segregation | Hold client and third-party property separate from lawyer property in a compliant trust account under IRPC 1.15 and Bar Commission Section XIII. | Idaho R. Prof. Conduct 1.15; IBCR § XIII |
| Trust-account requirement and exemptions | Maintain an approved trust account unless the lawyer certifies that no client or third-party property is handled or that the lawyer has no Idaho office. | IBCR 1303(a)-(b) |
| Clear title and federal insurance | Identify each account as a “trust” or “escrow” account and ensure deposited funds are insured by an agency of the federal government. | IBCR 1303(c)-(d) |
| Default IOLTA account | A lawyer required to maintain a trust account generally creates an IOLTA account for all client and third-party funds unless a permitted non-IOLTA treatment or exemption applies. | IBCR 1304(a) |
| Client-benefit non-IOLTA account | When funds can earn net income for the owner beyond costs, use a non-IOLTA trust account that credits that income to the client or third person. | IBCR 1304(b) |
| Net-income factors | Consider amount, duration, available yield, service and administration costs, tax-reporting costs, allocation capability, and other relevant circumstances. | IBCR 1304(c) |
| Approved IOLTA institution | Use a Bar-approved institution with both the attorney-trust-account overdraft agreement and, for IOLTA, the separate IOLTA participation agreement. | IBCR 1306-1307; ISB approved list |
| Comparable rate and allowable fees | The institution pays the highest rate available to similarly situated non-IOLTA accounts and deducts only allowable reasonable service charges. | IBCR 1305-1306 |
| Quarterly Foundation remittance | Direct net IOLTA interest or dividends to the Idaho Law Foundation at least quarterly with the required account information. | IBCR 1305(a)(2) |
| Annual licensing certification | Active and house-counsel members certify account information or the applicable trust and IOLTA exemptions as part of licensing. | IBCR 1302(b); ISB licensing guidance |
| Thirty-day account-change notice | Notify the Bar in writing within 30 days after opening, closing, or otherwise changing trust-account information. | IBCR 1302(c) |
| Overdrafts, records, disputes, and closure | Comply with overdraft reporting, preserve complete records, promptly deliver funds due, retain disputes, reconcile regularly, and close only after final accounting. | IRPC 1.15; IBCR 1308 |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Idaho Rules of Professional Conduct
Current Idaho State Bar publication of Rule 1.15 governing safekeeping, segregation, delivery, accounting, disputes, and cross-reference to trust-account rules.
OpenIdaho Bar Commission Rules — Section XIII Trust Accounts
Controlling detailed rules for certifications, exemptions, IOLTA decisions, approved institutions, rates, fees, remittance, and overdrafts.
OpenIdaho State Bar — Trust Account Certification
Current licensing instructions for annual trust-account and IOLTA certification by active and house-counsel members.
OpenIdaho State Bar — Approved Financial Institutions
Live approved-institution list and explanations of the separate ARTAO overdraft and IOLTA participation agreements.
OpenNotes
- Idaho distinguishes approval to hold attorney trust accounts from eligibility to offer IOLTA; confirm that the institution has submitted both required agreements when applicable.
- A geographic-hardship or other IOLTA exemption requires the Bar process described in Rule 1304(d); it is not created by inconvenience alone.
- This page is general information, not legal advice. Confirm current Bar Commission Rules and consult Bar Counsel, Licensing, the Idaho Law Foundation, or ethics counsel for specific questions.
Idaho — Frequently asked
Common questions for Idaho trust accounts. General information only — verify against the official sources above.
Who must maintain an Idaho trust account?
A lawyer handling client or third-party funds or property generally must maintain a compliant account unless certifying that no such property is handled or that the lawyer has no Idaho office.
Which funds belong in Idaho IOLTA?
A lawyer required to maintain a trust account generally places client and third-party funds in IOLTA unless those funds can earn net income for the owner or a valid exemption applies.
When may Idaho funds use a non-IOLTA account?
When the expected income exceeds the costs of securing and allocating it, the lawyer may use a separate or properly administered non-IOLTA trust account for the client or third person.
What factors determine whether funds can earn net income?
Consider amount, expected duration and delay, available rates, account charges, lawyer administration, tax-reporting costs, allocation capability, and other circumstances affecting net income.
Where may an Idaho trust account be opened?
Only at a financial institution approved by the Idaho State Bar under Rule 1306. For IOLTA, verify the institution is also eligible under the IOLTA agreement.
How should the account be titled?
Idaho requires a clear “trust” or “escrow” identification. The title should also identify the lawyer or firm and distinguish client property from operating funds.
What insurance is required?
Funds in Idaho trust accounts must be insured by an agency of the federal government. The lawyer should monitor balances and applicable pass-through coverage requirements.
What is the difference between ARTAO and IOLTA agreements?
ARTAO authorizes insufficient-funds reporting for attorney trust accounts. The IOLTA agreement separately covers comparable rates, allowable fees, Foundation reporting, and remittance. An IOLTA institution needs both.
What return must an Idaho IOLTA account receive?
The institution agrees to pay the highest rate or dividend generally available to similarly situated non-IOLTA accounts and may deduct only allowable reasonable service charges.
Who receives Idaho IOLTA earnings?
The institution remits net interest or dividends to the Idaho Law Foundation at least quarterly, with the account information required by Section XIII.
What is the annual trust-account certification?
Active and house-counsel members list trust accounts, mark each IOLTA or non-IOLTA, and certify the applicable trust and IOLTA requirement or exemption as part of licensing.
How quickly must account changes be reported?
Notify the Idaho State Bar in writing within 30 days after opening or closing an account or changing other reportable trust-account information.
What happens after an overdraft or dishonored item?
The approved institution notifies the Bar under the ARTAO agreement. The lawyer should investigate immediately, protect other clients, correct any shortage, preserve documentation, and cooperate with Bar Counsel.
How are advance fees and disputed funds handled?
Hold amounts that remain client property in trust until earned or incurred, promptly deliver undisputed funds, and keep disputed portions separate until resolution.
How should an Idaho IOLTA account be closed?
Stop new activity, account to each owner, resolve residual and disputed balances, clear outstanding items, notify the Bar within 30 days, complete a final reconciliation, and preserve records.