Jurisdiction Reference
Maryland IOLTA
Program: Maryland Legal Services Corporation IOLTA Program
Maryland lawyers in private practice must place eligible client trust funds in an approved IOLTA account unless a valid waiver applies. Maryland Legal Services Corporation receives the interest to fund civil legal services for low-income Marylanders.
General information, not legal advice — always confirm against the official Maryland sources below.
Ask about Maryland's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Maryland's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Maryland trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Duty to maintain an attorney trust account | An attorney may not receive funds intended for a client or third person unless the attorney maintains an attorney trust account as required by Title 19, Chapter 400. | Maryland Rule 19-403. |
| Required deposits | Deposit all client or third-person funds received in Maryland that are to be delivered in whole or in part to a client or third person, unless the funds are immediately delivered as permitted by rule. | Maryland Rule 19-404 and Rule 19-301.15. |
| IOLTA eligibility and $3,500 waiver threshold | Place eligible short-term or nominal funds in IOLTA. MLSC states that lawyers regularly holding at least $3,500 must open IOLTA; an average monthly balance below $3,500 may qualify for a waiver elected on the annual report. | Maryland Rule 19-409 and MLSC IOLTA for Lawyers. |
| Approved financial institution | Maintain IOLTA only at a financial institution approved under Maryland Rule 19-411; verify current approval status rather than relying on an old bank list. | Maryland Rules 19-411 and 19-412. |
| New-account enrollment notice | Complete the current Notice of New Maryland IOLTA Account and have the institution send it to MLSC for each new account. | MLSC New IOLTA Enrollment Form (December 2025). |
| Account name and designation | Title the account with the attorney or firm name and clearly label it Attorney Trust Account, Attorney Escrow Account, or Clients’ Funds Account on checks and deposit slips. | Maryland Rule 19-406. |
| Comparable interest rate | The participating institution must pay a rate on IOLTA comparable to similarly situated non-IOLTA accounts, subject to the rule’s account and rate provisions. | Maryland Rule 19-411 and MLSC IOLTA Honor Roll guidance. |
| Interest remittance and reporting | The institution remits net interest to MLSC monthly or quarterly by ACH and reports the lawyer or firm, account, balance, rate, gross interest, allowable charges, and net remittance. | Maryland Rule 19-411 and MLSC 2025 enrollment instructions. |
| Annual IOLTA Compliance Report | File the annual IOLTA Compliance Report through the Maryland Judiciary and accurately certify the account, waiver, or no-client-funds status; update compliance when circumstances change. | Maryland Rule 19-409 and MLSC lawyer guidance. |
| Commingling restrictions | Deposit only required trust funds plus limited attorney funds needed for permitted fees, service charges, or minimum balance; promptly remove earned fees and other attorney-owned funds. | Maryland Rule 19-408. |
| Prohibited use of trust funds | Do not borrow, pledge, obtain remuneration for depositing, or use entrusted funds for an unauthorized purpose. Do not create a deficit in any client’s balance. | Maryland Rule 19-410 and Rule 19-301.15. |
| Detailed account records | Create and maintain account identification, journals, client matter records, deposit records, checks, statements, electronic-transfer records, and documentation tracing each receipt and disbursement. | Maryland Rule 19-407(a). |
| Monthly reconciliation and five-year retention | Reconcile the trust account monthly, including bank, journal, and individual client balances, and preserve the required records in reproducible form for at least five years. | Maryland Rule 19-407. |
| Overdraft and dishonored-item authorization | Before exercising authority over the account, direct the institution in writing to designate it as trust and authorize reporting of overdrafts and dishonored instruments to Bar Counsel. | Maryland Rule 19-405 and the Rule 19-411 institution agreement. |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Maryland Title 19 — Attorney Trust Accounts
Official Judiciary rules covering accounts, deposits, records, commingling, IOLTA, banks, and enforcement.
OpenMaryland Attorneys’ Rules of Professional Conduct
Official rules including Rule 19-301.15 on safekeeping property.
OpenMLSC IOLTA for Lawyers
Official lawyer guidance on enrollment, the $3,500 threshold, waivers, and annual compliance.
OpenNew Maryland IOLTA Enrollment Form
Current MLSC enrollment and remittance instructions dated December 2025.
OpenMLSC Guide for Financial Institutions
Official program guide explaining bank approval and IOLTA operations.
OpenNotes
- Reviewed against Maryland Title 19 materials and MLSC resources available July 14, 2026.
- The June 25, 2026 Rule 19-301.15 agenda proposal is not treated here as an effective rule.
- The $3,500 waiver depends on average monthly balance and annual certification; lawyers should confirm current MLSC instructions each cycle.
Maryland — Frequently asked
Common questions for Maryland trust accounts. General information only — verify against the official sources above.
Who must maintain a Maryland attorney trust account?
An attorney who receives funds in Maryland intended for a client or third person must maintain the required attorney trust account before accepting those funds.
Who must open a Maryland IOLTA account?
A lawyer in private practice who regularly holds eligible short-term or nominal client funds generally must use IOLTA. MLSC states that regular holdings of at least $3,500 require an IOLTA account.
What is Maryland’s $3,500 IOLTA waiver?
If client trust funds are held but the average monthly balance is below $3,500, MLSC permits a waiver elected on the Annual IOLTA Compliance Report and use of a non-interest-bearing escrow account.
What if I do not hold client funds?
You need not open an escrow or IOLTA account solely because you are licensed, but you must accurately certify your no-client-funds status on the annual report.
How do I choose IOLTA versus a client-specific interest account?
Use IOLTA for funds too small or held too briefly to produce net income for the owner. Use a separate interest-bearing arrangement when the client or third person can receive net interest.
Where may Maryland IOLTA funds be deposited?
Use a financial institution currently approved under Rule 19-411. Check the current MLSC or Judiciary information before opening or moving the account.
How must the account be titled?
Include the attorney or firm name and clearly designate it Attorney Trust Account, Attorney Escrow Account, or Clients’ Funds Account on account records, checks, and deposit slips.
How is a new IOLTA account enrolled?
Complete the current MLSC Notice of New Maryland IOLTA Account and have the institution submit it for every new account using the current MLSC instructions.
Who receives Maryland IOLTA interest?
The financial institution remits net interest to Maryland Legal Services Corporation to support grants for civil legal services to low-income Marylanders.
How often is interest remitted?
Current MLSC instructions call for ACH remittance monthly or quarterly, with the account-level information specified in the enrollment form.
What interest rate must the bank pay?
Rule 19-411 requires a rate comparable to rates on similarly situated non-IOLTA accounts. Honor Roll institutions voluntarily meet enhanced-yield standards.
Who pays ordinary IOLTA service charges?
MLSC states it pays reasonable and customary IOLTA service charges. Other charges attributable to the lawyer or account may require attorney funds under Rule 19-408.
May firm money be kept in the trust account?
Only limited funds permitted to cover required fees, service charges, or minimum balance may be deposited. Do not use trust as an operating or savings account.
Where do advance fees go?
Advance legal fees and expenses belong in a client trust account and may be withdrawn only as fees are earned or expenses incurred under Rule 19-301.15(c).
What records must be kept?
Keep account identification, journals, client matter ledgers, deposit slips, checks, statements, transfer records, reconciliation records, and documents tracing every transaction.
How often should a Maryland trust account be reconciled?
Perform and document the reconciliation monthly, comparing the bank balance, account journal, and total client or matter balances.
How long must Maryland trust records be kept?
Preserve the records required by Rule 19-407 for at least five years in a form that can be reproduced on paper.
What happens after an overdraft or dishonored item?
The institution reports the event to Bar Counsel under the attorney’s written authorization. Investigate immediately, preserve records, correct any shortage, and respond accurately.
May a lawyer borrow or pledge trust funds?
No. Maryland prohibits borrowing, pledging, receiving remuneration for depositing, or using entrusted funds for an unauthorized purpose.
What should I do when the account or my status changes?
Reconcile and protect all balances, submit MLSC enrollment or closure information as applicable, retain the records, and reflect the changed circumstances on the annual compliance report.