Jurisdiction Reference
Indiana IOLTA
Program: Indiana Bar Foundation IOLTA Program
Indiana Professional Conduct Rule 1.15 requires lawyers to maintain IOLTA for nominal or short-term client funds unless an exemption applies. Indiana couples the account rule with annual portal certification, approved overdraft-reporting institutions, detailed records and audits, and current procedures for unclaimed or unidentified trust funds.
General information, not legal advice — always confirm against the official Indiana sources below.
Ask about Indiana's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Indiana's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Indiana trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregate client and third-party property | A lawyer must hold client or third-person property separate from the lawyer's own property and safeguard it in the required trust account. | Indiana Prof. Cond. R. 1.15(a)-(e). |
| Use IOLTA for nominal or short-term funds | Unless exempt, a lawyer or firm must maintain an interest-bearing IOLTA for funds too small or brief to earn client income exceeding the cost to secure it. | Prof. Cond. R. 1.15(f). |
| Use client-benefit accounts for productive funds | Funds capable of generating net income for the client should be placed in an appropriate separate interest-bearing trust account for that owner. | Prof. Cond. R. 1.15; comments. |
| Pay IOLTA earnings to the Indiana Bar Foundation | Net earnings from the pooled IOLTA account are transmitted to the Indiana Bar Foundation for Supreme Court-approved public-service purposes. | Prof. Cond. R. 1.15(f)(1)-(9). |
| Complete annual IOLTA certification | Every licensed Indiana attorney must certify IOLTA status during annual registration, even when exempt from maintaining an account. | Admission and Discipline Rule 2(f); Courts Portal guidance. |
| Report each IOLTA account in the portal | Account holders list the bank and account number, and when the bank is not listed also provide the routing number; multiple accounts are reported separately. | Indiana Judicial Branch IOLTA portal guidance. |
| Use an overdraft-reporting institution | Trust accounts must be maintained at a financial institution that has agreed to report overdrafts and insufficient-funds events to the disciplinary authority. | Admission and Discipline Rule 23 §29; OJAR trust-account list. |
| Notify the bank for non-IOLTA trust accounts | The lawyer must use the Attorney Trust Account Notification so a non-IOLTA trust account is covered by the overdraft-reporting system. | Admission and Discipline Rule 23 §29; OJAR form. |
| Maintain complete transaction records | Keep contemporaneous records identifying all receipts, deposits, disbursements, clients or third parties, purposes, and running balances. | Admission and Discipline Rule 23 §29(a). |
| Maintain individual client ledgers | A separate ledger must show every transaction and balance for each client or third person whose funds are held. | Admission and Discipline Rule 23 §29(a). |
| Reconcile trust records regularly | The bank statement, account register, and total individual ledger balances must be reconciled so the lawyer can verify that entrusted funds are intact. | Rule 23 §29(a); OJAR Trust Account Management guide. |
| Preserve records and cooperate with audits | Required records must be retained for the rule's prescribed period and produced for Disciplinary Commission trust-account audits. | Admission and Discipline Rule 23 §§29-30. |
| Handle unclaimed or unidentified funds under Rule 1.15 | After the rule's required reasonable efforts and waiting periods, qualifying unclaimed or unidentified trust funds are paid to the Indiana Bar Foundation through the prescribed process. | Prof. Cond. R. 1.15(h), effective 2023 and amended 2024. |
| Supervise all delegated trust-account work | Partners, supervisory lawyers, and lawyers using nonlawyer assistants remain responsible for systems and supervision that protect entrusted funds. | Prof. Cond. R. 5.1-5.3; OJAR trust guidance. |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Indiana Rules of Professional Conduct
Current official rules, updated effective October 1, 2024, including Rule 1.15.
OpenIndiana Professional Conduct Rules PDF
Official full text for IOLTA, Foundation administration, and unclaimed funds.
OpenOJAR — Attorney Trust Accounts
Current overdraft-reporting banks, forms, rules, audits, and management resources.
OpenIndiana Courts Portal — Update IOLTA Information
Official annual certification and account-reporting instructions.
OpenIndiana Judicial Branch — Admission and IOLTA Forms
Official overdraft agreement and non-IOLTA trust-account notification forms.
Open2024 Order Amending Rule 1.15
Current Supreme Court amendment to Indiana's IOLTA and trust-fund procedures.
OpenNotes
- Reviewed against Indiana Supreme Court and OJAR materials available July 14, 2026; pending proposed amendments were not treated as current law.
- Indiana IOLTA duties span Professional Conduct Rule 1.15, Admission and Discipline Rules 2 and 23, and Courts Portal reporting.
- This summary is educational and does not replace current rules, OJAR forms, audit requirements, or disciplinary guidance.
Indiana — Frequently asked
Common questions for Indiana trust accounts. General information only — verify against the official sources above.
What is Indiana IOLTA?
It is the pooled interest-bearing trust account for client funds too small or short-term to earn net income for the client.
Who administers Indiana IOLTA?
The Indiana Bar Foundation receives net earnings and uses them under Supreme Court-approved distribution plans.
Who needs an Indiana IOLTA account?
A lawyer or firm holding qualifying nominal or short-term client funds must maintain one unless a Rule 1.15 exemption applies.
Does every Indiana lawyer certify IOLTA status?
Yes. Annual certification is required even for lawyers exempt from maintaining an account.
What is reported in the Courts Portal?
The bank and account number for each IOLTA; if the bank is not listed, also enter routing information.
Can a lawyer have multiple Indiana IOLTA accounts?
Yes. Add and certify each separately in the portal.
Which funds belong in IOLTA?
Funds nominal in amount or held briefly when client income would not exceed the cost to obtain it.
When should funds earn interest for the client?
When amount and duration can produce net income, use a suitable separate interest-bearing trust account.
May any bank hold an Indiana trust account?
Use an institution participating in Indiana's trust-account overdraft-reporting system; confirm it on OJAR's current list.
What is required for a non-IOLTA trust account?
Notify the institution using the official Attorney Trust Account Notification so overdraft reporting applies.
What happens after a trust-account overdraft?
The institution reports the event to the disciplinary authority under Admission and Discipline Rule 23.
What transaction records are required?
Records tracing every receipt, deposit, withdrawal, payee, client, purpose, and running balance.
What is an individual client ledger?
A separate record for each owner showing all trust transactions and the amount currently held for that person.
How should an Indiana trust account be reconciled?
Compare the adjusted bank balance, register balance, and total individual client-ledger balances and investigate differences.
Can the Disciplinary Commission audit trust accounts?
Yes. Rule 23 §30 authorizes trust-account audits and required records must be produced.
How long should records be retained?
For the full period required by Admission and Discipline Rule 23 and any longer period applicable to the matter or property.
What happens to unclaimed client funds?
After reasonable efforts and the applicable rule process, qualifying funds may be transferred to the Indiana Bar Foundation under Rule 1.15(h).
What are unidentified funds?
Funds in trust whose owner cannot be determined after reasonable efforts; Rule 1.15 supplies a separate Foundation-transfer procedure.
Can staff manage the account?
Yes under proper systems and supervision, but lawyers remain professionally responsible.
Where does Indiana IOLTA interest go?
To support civil legal assistance, pro bono programs, administration, reserves, and other Supreme Court-approved public programs.