Jurisdiction Reference
Maine IOLTA
Program: Maine Justice Foundation IOLTA Program
Maine requires admitted lawyers to safeguard client and third-party property under Professional Conduct Rule 1.15 and maintain Maine trust funds in clearly identified accounts at eligible institutions under Maine Bar Rule 6. Small or short-term funds go to pooled IOLTA; funds capable of producing net income use client-benefit accounts. Maine also imposes a two-business-day limit for a narrow payment-processing transfer exception, comparable-rate and overdraft-reporting conditions, annual certification or a defined exemption, and detailed delivery, dispute, recordkeeping, reconciliation, and closure duties.
General information, not legal advice — always confirm against the official Maine sources below.
Ask about Maine's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Maine's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Maine trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregation of client and third-party property | Hold client or third-person property separate from the lawyer’s own property in identifiable accounts maintained under Maine Bar Rule 6. | Me. R. Prof. Conduct 1.15(a)-(b) |
| Advance fees and two-business-day transfer | Deposit advance fees, retainers, and expenses in trust until earned or incurred; a payment-processing exception requires prompt transfer to trust no later than two business days. | Me. R. Prof. Conduct 1.15(b)(1) |
| Clearly identified eligible accounts | Deposit trust funds held in Maine in properly identified IOLTA or other Rule 1.15 accounts at eligible institutions and inform the institution of the account’s fiduciary purpose. | Maine Bar Rule 6(a) |
| Small or short-term funds to IOLTA | Place funds that are small in amount or held too briefly to earn net income for the owner in a pooled IOLTA account. | Me. R. Prof. Conduct 1.15(b)(4); Bar Rule 6(c) |
| Client-benefit interest accounts | When funds can earn net interest for the owner, use a separate account or pooled subaccounting arrangement that credits net earnings to that client or third person. | Me. R. Prof. Conduct 1.15(b)(3) |
| Economic determination factors | Consider amount, expected duration, available rates, service and transaction costs, lawyer administration, tax reporting, and other costs in deciding IOLTA eligibility. | Me. R. Prof. Conduct 1.15 cmt. [8] |
| Eligible insured institution | Use a Maine-authorized, federally insured bank or credit union that meets Rule 6 eligibility, overdraft-reporting, and IOLTA-rate requirements. | Me. R. Prof. Conduct 1.15(b)(4); Bar Rule 6 |
| Comparable interest or dividend rate | An eligible institution must provide IOLTA a rate comparable to qualifying non-IOLTA accounts and comply with allowable-fee and remittance provisions. | Maine Bar Rule 6(c) |
| Annual certification or exemption | Every admitted lawyer annually certifies the maintained IOLTA account and reasonable compliance steps or identifies a specific Rule 6(b)(2) exemption. | Maine Bar Rule 6(b) |
| Overdraft notification agreement | Maintain trust funds only at an eligible institution that has agreed to report covered insufficient-funds events under Maine’s overdraft-notification requirements. | Maine Bar Rule 6; Annual IOLTA forms |
| Notification, delivery, and disputed funds | Promptly notify clients of receipts, deliver property due, account on request, and retain any disputed lawyer-client portion until final resolution. | Me. R. Prof. Conduct 1.15(b)(1)-(2) |
| Records, reconciliation, and closure | Preserve complete bank, journal, client-ledger, and transaction records; reconcile regularly; and close only after all balances, items, notices, and retention duties are satisfied. | Me. R. Prof. Conduct 1.15; Maine Bar Rules |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Maine Rules of Professional Conduct — Rule 1.15
Official rule for segregation, advance payments, client-benefit accounts, IOLTA eligibility, notification, delivery, disputes, and records.
OpenMaine Bar Rules — Rule 6 IOLTA
Official current bar rules for eligible institutions, account identification, annual certification, exemptions, rates, and oversight.
OpenBoard of Overseers — IOLTA Registration
Official program and registration page linking controlling rules, annual report, and overdraft-notification materials.
OpenBoard of Overseers — Annual IOLTA Trust Account Report
Current mandatory reporting form for accounts, firm arrangements, exemptions, and financial-institution directions.
OpenNotes
- Maine Rule 1.15 determines ownership and account type; Maine Bar Rule 6 governs IOLTA administration, eligible institutions, certification, and exemptions. Read them together.
- The narrow payment-processing exception does not convert advance fees into lawyer property; transfer to the trust account must occur promptly and no later than two business days when the exception is used.
- This page is general information, not legal advice. Confirm current Supreme Judicial Court and Board forms and consult Bar Counsel, the Board of Overseers, Maine Justice Foundation, or ethics counsel for specific facts.
Maine — Frequently asked
Common questions for Maine trust accounts. General information only — verify against the official sources above.
Who must maintain a Maine IOLTA account?
Every lawyer admitted in Maine generally certifies that the lawyer or firm maintains at least one compliant IOLTA account and has taken reasonable steps regarding client funds, unless a specific Rule 6 exemption applies.
Which Maine lawyers may claim an exemption?
Rule 6 identifies categories including no private practice, no Maine office, certain full-time public or institutional roles, a court-ordered exemption, or holding no client funds. Use the exact current certification language.
Which funds belong in Maine IOLTA?
Client or third-party funds that are small in amount or expected to be held too briefly to earn net income for the owner after costs belong in a pooled IOLTA account.
When should Maine funds use a client-benefit account?
When funds are expected to earn net interest for the client or third person, use a separate interest-bearing account or pooled subaccounting arrangement that calculates and credits the owner’s earnings.
What factors determine whether funds can earn net interest?
Consider the amount, expected holding period and delay risk, available rates, account and transaction charges, lawyer administration, tax-reporting costs, and other expenses affecting the net result.
Where may a Maine trust account be maintained?
Use an eligible institution authorized to do business in Maine, federally insured as required, and compliant with Rule 6’s IOLTA rate, remittance, and overdraft-notification conditions.
How should the account be identified?
Clearly label the account as an IOLTA or other client trust account, identify the lawyer or firm, and take the steps necessary to inform the institution of its fiduciary purpose and regulatory status.
Where do advance fees and expense deposits go?
Deposit advance fees, retainers, and prepaid expenses in trust until earned or incurred. Withdraw only supported amounts and keep any disputed lawyer portion in trust.
What is Maine’s two-business-day payment exception?
If the client’s chosen payment method makes temporary receipt outside trust necessary, the lawyer may use the narrow exception only when funds are transferred promptly—and no later than two business days—and collection is reasonably reliable.
What is the annual IOLTA certification?
With annual registration, each admitted lawyer reports the maintained compliant IOLTA arrangement and reasonable investigation or selects and supports an exemption recognized by Maine Bar Rule 6(b).
Does each lawyer in a firm report the firm’s account?
Each lawyer remains responsible for the annual report. Follow the Board’s current instructions for listing firm accounts and relying on firm compliance; the certification is not automatically satisfied by another lawyer’s filing.
What happens after an overdraft or insufficient-funds event?
The eligible institution reports covered events under the overdraft-notification agreement. The lawyer should investigate immediately, protect other clients, correct any shortage, document the cause, and cooperate with Bar Counsel.
How are disputed funds handled?
Keep the disputed portion in trust until final resolution, promptly release undisputed amounts, notify the client or third person of receipts, and provide an accounting when requested.
What records and reconciliations should be maintained?
Keep bank statements and item images, deposit records, receipts and disbursements journals, individual client ledgers, fee and transfer support, and timely three-way reconciliations for the required retention period.
How should a Maine IOLTA account be closed?
Stop new activity, account to every owner, resolve residual and disputed balances, let outstanding items clear, notify the institution and program as required, complete a final reconciliation, and preserve records.