Jurisdiction Reference
Louisiana IOLTA
Program: Louisiana Bar Foundation IOLTA Program
Louisiana lawyers generally must place nominal or short-term client and third-person funds in a pooled IOLTA account administered by the Louisiana Bar Foundation. Rule 1.15 and the Louisiana Supreme Court IOLTA Rules govern account placement, eligible institutions, interest comparability, safeguards, reporting, and disposition of unidentified or unclaimed funds.
General information, not legal advice — always confirm against the official Louisiana sources below.
Ask about Louisiana's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Louisiana's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Louisiana trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Separate client property | Keep client and third-person property separate from the lawyer’s property. Trust funds generally belong in a separate interest-bearing client trust account; account earnings may not be used by the lawyer or firm. | Louisiana Rule of Professional Conduct 1.15(a). |
| Mandatory pooled IOLTA account | Create and maintain a pooled, interest-bearing IOLTA account for client or third-person funds that are nominal in amount or held too briefly to earn net income for the owner. | Louisiana Rule of Professional Conduct 1.15(g) and IOLTA Rule 1(c). |
| Individual interest-bearing account | Funds that can earn net income for the client or third person should be placed in a separate interest-bearing non-IOLTA trust account for that owner; the lawyer applies professional judgment using the rule’s economic factors. | Louisiana IOLTA Rules 1(a)-(b); LSBA Practice Aid Guide, Section 3. |
| Eligible financial institution | Maintain an IOLTA account only at a financial institution approved as eligible by the Louisiana Bar Foundation and authorized to hold the account. | Louisiana Rule of Professional Conduct 1.15(g)(1)-(2). |
| Comparable yield or benchmark | An eligible institution must provide the required comparable rate or qualifying benchmark treatment for IOLTA balances. The Foundation publishes the current safe-harbor benchmark rate. | Louisiana Rule of Professional Conduct 1.15(g)(3); Louisiana Bar Foundation IOLTA page. |
| Interest belongs to the Foundation | Net interest or dividends on pooled IOLTA accounts must be remitted to the Louisiana Bar Foundation, which holds the beneficial interest and uses the proceeds for court-approved public purposes. | Louisiana IOLTA Rules 1(c)(3). |
| Advance fees and expenses | Deposit legal fees and expenses paid in advance into trust and withdraw them only as fees are earned or expenses incurred, consistently with Rule 1.5(f). | Louisiana Rule of Professional Conduct 1.15(c). |
| Limited lawyer funds | A lawyer may place personal funds in trust only in the amount necessary to pay or obtain a waiver of bank service charges. | Louisiana Rule of Professional Conduct 1.15(b). |
| Prompt notice, delivery, and accounting | Promptly notify a client or qualifying third person when their property is received, promptly deliver what they are entitled to receive, and provide a full accounting on request. | Louisiana Rule of Professional Conduct 1.15(d). |
| Disputed funds | Keep property claimed by two or more persons separate until the dispute is resolved, while promptly distributing every undisputed portion. | Louisiana Rule of Professional Conduct 1.15(e). |
| Lawyer-controlled withdrawals | Every check, draft, electronic transfer, or other withdrawal must be personally signed by a lawyer or, for electronic, telephone, or wire transfers, directed by an authorized lawyer. | Louisiana Rule of Professional Conduct 1.15(f). |
| Trust-account disclosure and overdrafts | Disclose required trust or escrow accounts and maintain them at a federally insured institution that has agreed to report overdrafts to the Office of Disciplinary Counsel. | Louisiana Supreme Court Rule XIX, Appendix E. |
| Five-year records | Keep complete records of trust funds and other client or third-person property for five years after the representation ends. | Louisiana Rule of Professional Conduct 1.15(a); LSBA Practice Aid Guide. |
| Unidentified and unclaimed funds | After the rule’s required due diligence and holding periods, remit qualifying unidentified or unclaimed IOLTA funds to the Louisiana Bar Foundation using its designated procedures; an owner may later pursue a claim. | Louisiana Rule of Professional Conduct 1.15(g)(7)-(8) and (h); Louisiana Bar Foundation forms. |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Louisiana Supreme Court Rule 1.15 and IOLTA Rules
Official court order setting out safekeeping and Louisiana IOLTA requirements.
OpenLouisiana Supreme Court Rule XIX Appendices
Official trust-account disclosure, certification, and overdraft authorization materials.
OpenLouisiana Bar Foundation IOLTA Program
Program overview, current benchmark information, forms, and eligible-institution resources.
OpenLouisiana Bar Foundation Comparability Rule
Foundation explanation of eligible institutions and comparable-rate treatment.
OpenLSBA Practice Aid Guide: Fees, Billing and Trust Accounts
Official bar practice guidance on Rule 1.15, IOLTA placement, and client property.
OpenLouisiana Bar Foundation Secure Remittance Portal
Official Foundation portal and contact source for participating financial institutions.
OpenNotes
- Verify the Louisiana Bar Foundation’s published benchmark rate before relying on a percentage; the program page states 2.25% as of January 1, 2026.
- Rule 1.15 controls the lawyer’s duties; Foundation pages supply operational forms, eligible-institution information, and current program administration details.
- This summary is educational and does not replace the current Louisiana rules, court orders, disciplinary guidance, or advice for a specific trust-account situation.
Louisiana — Frequently asked
Common questions for Louisiana trust accounts. General information only — verify against the official sources above.
Is Louisiana IOLTA participation mandatory?
Generally yes. Most Louisiana lawyers and firms that hold nominal or short-term client or third-person funds must use the Louisiana Bar Foundation IOLTA program, subject to the administrator’s limited exemptions.
Which funds belong in a Louisiana IOLTA account?
Funds that are nominal in amount or expected to be held too briefly to earn net income for the client or third person belong in the pooled IOLTA account.
When should funds use a separate interest-bearing trust account?
Use a separate non-IOLTA interest-bearing trust account when the amount and expected holding period make it practical to earn net income for the client or third person.
Who decides whether funds are nominal or short term?
The lawyer exercises independent professional judgment using the amount, expected duration, available interest, account costs, and other economic factors stated in the rules.
Where may a Louisiana IOLTA account be kept?
It must be maintained at a financial institution approved as eligible by the Louisiana Bar Foundation and otherwise authorized under Rule 1.15.
Who receives Louisiana IOLTA interest?
The financial institution remits net IOLTA interest or dividends to the Louisiana Bar Foundation for court-approved access-to-justice and public purposes.
May the lawyer or client keep pooled IOLTA interest?
No. Neither the lawyer nor an individual client receives the pooled account’s earnings; funds capable of earning net income for an owner should be handled in an appropriate separate account.
What is Louisiana’s IOLTA benchmark rate?
The Foundation publishes the current safe-harbor benchmark. Its program page lists 2.25% as of January 1, 2026, but users should confirm the current posting before acting.
Must advance fees be deposited into trust?
Yes. Advance fees and expenses must be placed in trust and withdrawn only as earned or incurred, consistently with Rule 1.5(f).
Can a lawyer put personal money in the trust account?
Only the amount necessary to pay bank service charges or obtain a waiver of those charges may be deposited.
What must happen when client or third-person funds arrive?
The lawyer must promptly notify the person with the recognized interest, safeguard the property, promptly deliver amounts due, and provide a full accounting on request.
How are disputed funds handled?
Keep the disputed portion separate until the dispute is resolved and promptly distribute all portions that are not disputed.
Who may authorize withdrawals from a Louisiana trust account?
A lawyer must personally sign withdrawal instruments or direct electronic, telephone, or wire transfers; a firm may designate authorized lawyers.
Does Louisiana require overdraft reporting?
Yes. Covered trust accounts must be at federally insured institutions that agree to report overdrafts to the Office of Disciplinary Counsel under Rule XIX procedures.
How long must Louisiana trust-account records be retained?
Complete records must be preserved for five years after termination of the representation.
Can an attorney be exempt from IOLTA?
The program administrator may allow an exemption, including when participation is economically impractical or the lawyer never handles client funds. Other safeguarding duties still apply whenever funds are held.
Must the client receive notice that funds are placed in IOLTA?
Placement is within the lawyer’s independent professional judgment. Program notice is informational; the rules do not make client permission the basis for pooled IOLTA placement.
What happens to unidentified IOLTA funds?
After required due diligence and the rule’s holding period, qualifying unidentified funds are remitted to the Louisiana Bar Foundation under Rule 1.15 and Foundation procedures.
What happens to unclaimed client funds?
Funds whose owner cannot be located or will not accept payment after the required period and reasonable diligence are handled under Rule 1.15’s unclaimed-funds process and Foundation forms.
Does an IOLTA exemption allow commingling?
No. An exemption from program participation does not eliminate the duty to keep client and third-person property separate from the lawyer’s own property.