Jurisdiction Reference
Nevada IOLTA
Program: Nevada IOLTA Program
Nevada lawyers must safeguard client and third-party funds under Nevada Rule of Professional Conduct 1.15, SCR 78.5, and SCR 217. Nominal or short-term funds from Nevada matters belong in an IOLTA account at an eligible Nevada financial institution; larger or longer-held funds should be evaluated for a separate account benefiting the client. This page summarizes account setup, enrollment, annual reporting, recordkeeping, overdraft controls, disbursement, and unclaimed-fund duties using State Bar of Nevada sources.
General information, not legal advice — always confirm against the official Nevada sources below.
Ask about Nevada's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Nevada's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Nevada trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Funds that belong in IOLTA | Use a Nevada IOLTA account for client or third-party funds that are nominal in amount or expected to be held only briefly, so the funds cannot reasonably earn net interest for the owner after costs. | SCR 217; State Bar of Nevada IOLTA guidance |
| Separate client-benefit accounts | Funds that are more than nominal or will be held long enough to earn net interest should be evaluated for a separate trust account, with interest paid to the client or third party rather than the Nevada Bar Foundation. | SCR 217; State Bar of Nevada IOLTA guidance |
| Nevada financial institution requirement | Funds arising from a Nevada matter must be maintained at an approved financial institution in Nevada. An IOLTA institution must be headquartered in Nevada or maintain at least one physical Nevada branch and satisfy SCR 217 and SCR 78.5. | SCR 217; State Bar of Nevada eligible-bank guidance |
| Account title and identification | Clearly identify the account as a trust, escrow, IOLTA, or client-funds account. State Bar guidance recommends the firm name plus an IOLTA, trust-account, or client-funds subtitle. | SCR 78.5; State Bar of Nevada IOLTA guidance |
| Nevada Bar Foundation tax ID | The financial institution should associate the IOLTA account with the Nevada Bar Foundation tax identification number for interest reporting, not the lawyer or client tax ID. | State Bar of Nevada IOLTA guidance |
| Enrollment for every account | Complete an Attorney Enrollment Form each time an IOLTA account is opened; provide it to the institution, send a copy to the designated IOLTA contact, and retain a copy in firm records. | State Bar of Nevada IOLTA guidance |
| Annual compliance disclosure | With annual license fees and mandatory disclosures, report current IOLTA accounts and certify compliance with SCR 217, including use of a participating financial institution or a properly claimed rural waiver. | SCR 217; State Bar of Nevada annual-reporting guidance |
| Interest-rate comparability | The institution must pay an eligible rate under one of the SCR 217 benchmarks and meet the rule’s payment and reporting conditions. Lawyers should confirm the bank remains on the current eligible list. | SCR 217 |
| Segregation and limited lawyer funds | Keep client and third-party funds separate from lawyer funds. A lawyer may deposit only the amount of personal funds reasonably necessary to cover bank service charges. | Nevada RPC 1.15(a)-(b) |
| Advance fees and prompt delivery | Deposit advance fees and expenses into trust and withdraw only as earned or incurred. Promptly notify the owner when funds arrive, deliver undisputed amounts promptly, and provide an accounting on request. | Nevada RPC 1.15(c)-(d) |
| Disputed funds and records | Hold disputed funds separately until the dispute is resolved, distribute undisputed portions promptly, and maintain complete trust-account records for the applicable retention period; Nevada RPC 1.15 states seven years after the representation ends. | Nevada RPC 1.15(e); State Bar Trust Accounting in Nevada handbook |
| Overdrafts and unclaimed funds | Use an institution that reports trust-account overdrafts to Bar Counsel. For unclaimed or unidentified funds, make reasonable owner-location efforts for five years before remitting eligible funds to the Clients’ Security Fund under RPC 1.15(f). | SCR 78.5; Nevada RPC 1.15(f) |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
State Bar of Nevada — IOLTA
Official setup, enrollment, eligible-institution, annual-reporting, and SCR 217 guidance.
OpenNevada Supreme Court Rule 217
Official order containing Nevada’s interest-bearing lawyer trust-account requirements.
OpenState Bar of Nevada — IOLTA Eligible Banks
Current official list and explanation of eligible participating institutions.
OpenTrust Accounting in Nevada
State Bar handbook covering RPC 1.15, SCR 78.5, SCR 217, records, reconciliation, deposits, and disbursements.
OpenState Bar of Nevada — Unclaimed or Unidentified Funds
Official instructions for reasonable search efforts and five-year remittance under RPC 1.15(f).
OpenNotes
- Confirm the institution’s current eligibility before opening or moving an account; bank participation and branch status can change.
- The State Bar handbook is a practical aid, while the current Nevada Rules of Professional Conduct and Supreme Court Rules control if wording differs.
- This summary is general information, not legal advice. Contact the State Bar of Nevada Ethics Hotline or IOLTA staff for matter-specific guidance.
Nevada — Frequently asked
Common questions for Nevada trust accounts. General information only — verify against the official sources above.
When must a Nevada lawyer use an IOLTA account?
Use IOLTA for client or third-party funds that are nominal in amount or expected to be held for a short period, when a separate account would not produce net interest for the owner after costs.
How do I decide whether funds are nominal or short-term?
Evaluate the amount, expected holding period, available interest rate, account and tax-reporting costs, and other practical costs. Reassess if the amount or expected duration changes.
What should I do with funds capable of earning net interest for the client?
Consider a separate interest-bearing trust account for that client or third party, using an approved institution and directing net interest to the beneficial owner.
May Nevada-matter IOLTA funds be held at an out-of-state bank?
SCR 217 guidance states that funds arising from a Nevada matter must be kept in an approved financial institution in Nevada. Confirm any unusual multijurisdictional arrangement with Bar Counsel.
How do I know whether a bank is IOLTA eligible?
Check the State Bar’s current IOLTA Eligible Banks list. The institution must satisfy SCR 217 and SCR 78.5, including Nevada-presence, rate, reporting, and overdraft-notification requirements.
What should the Nevada IOLTA account be called?
Clearly identify it as a trust account. State Bar guidance recommends the firm name followed by IOLTA account, trust account, or client funds account.
Whose tax ID is used for IOLTA interest?
The Nevada Bar Foundation tax identification number is used for IOLTA interest reporting. The financial institution should have it or obtain it from IOLTA staff.
Must I submit an enrollment form for every new account?
Yes. Complete the Attorney Enrollment Form each time an IOLTA account is opened, give it to the bank, send the required copy to the IOLTA program, and retain a copy.
What must I report annually?
With annual licensing and mandatory disclosures, identify current trust accounts and certify SCR 217 compliance, including placement at a participating institution or an applicable rural waiver.
Is there a rural exception to the participating-bank requirement?
State Bar guidance describes a waiver when no participating institution is within 20 miles. Follow the current SCR 78 disclosure instructions precisely rather than assuming the exception applies.
May I keep firm money in the IOLTA account?
Only a limited amount reasonably necessary to pay bank service charges may be deposited. Operating funds, earned fees, and excess cushions should not remain commingled with client property.
Where do advance fees and cost deposits go?
Under Nevada RPC 1.15, advance fees and expenses belong in trust until earned or incurred, unless a different treatment is clearly permitted by current Nevada law and the fee agreement.
When may earned fees be transferred to operating?
Transfer only after the fee is earned and any required billing or notice has occurred. Keep a clear ledger and audit trail showing the basis, date, and amount of each transfer.
What if the client disputes a fee or another person claims the funds?
Keep the disputed portion separate until the dispute is resolved, while promptly distributing portions no one disputes.
Can I disburse against a deposited check immediately?
Do not disburse unless sufficient collected funds for that client are available. Bank availability is not always the same as final collection, and one client’s funds may never cover another client’s payment.
What records should a Nevada firm maintain?
Maintain bank statements, checks or images, deposit records, an account journal, individual client ledgers, fee and disbursement support, and reconciliation records sufficient to trace every receipt and payment.
How long should Nevada trust-account records be preserved?
Nevada RPC 1.15 states seven years after termination of the representation. SCR 78.5 contains a five-year minimum for specified account records; using the longer applicable period is the prudent baseline.
What happens if the IOLTA account is overdrawn?
An approved institution must notify Bar Counsel when a properly payable instrument is presented against insufficient funds, whether or not the bank honors it. Investigate and correct the cause immediately.
What should I do with unclaimed or unidentified funds?
Make and document reasonable efforts to identify and locate the owner. Nevada guidance permits eligible funds to be remitted to the Clients’ Security Fund after five years under RPC 1.15(f).
What should I do when closing or moving an IOLTA account?
Reconcile to zero, resolve outstanding items, distribute or transfer every client balance with a complete audit trail, notify the IOLTA program and Bar as required, and retain final statements and closure records.