Jurisdiction Reference
Washington IOLTA
Program: Legal Foundation of Washington IOLTA Program
Washington RPC 1.15A and 1.15B impose detailed controls for lawyer trust accounts. Client or third-person funds that will not produce a positive net return belong in IOLTA, with interest paid to the Legal Foundation of Washington; funds that can produce a positive net return generally belong in a client-benefit account. Washington requires authorized institutions, current ledgers, reconciliations when statements issue or at least quarterly, seven-year records, an annual Trust Account Declaration, and prompt overdraft reporting.
General information, not legal advice — always confirm against the official Washington sources below.
Ask about Washington's IOLTA rules
Deposits, reconciliation, reporting, recordkeeping — answered from Washington's official sources. Not legal advice.
Quick reference
Plain-language summaries of common Washington trust-accounting requirements. Use these to orient yourself, then verify the exact rule text through the official sources.
| Topic | Summary | Category |
|---|---|---|
| Segregate and safeguard client and third-party property | Never use, convert, borrow, or pledge client or third-party property. Keep it separate from lawyer property and deposit covered funds in a compliant trust account. | Washington RPC 1.15A(b)-(c) |
| Use IOLTA for funds with no positive net return | Place nominal or short-term funds that will not produce a positive net return for the client or third person in a pooled IOLTA whose interest is paid to the Legal Foundation of Washington. | Washington RPC 1.15A(i)(1) |
| Use a client-benefit account for net-positive funds | Place funds capable of producing a positive net return in a separate interest-bearing account or a pooled account with subaccounting that pays each client's interest, unless the client requests IOLTA and the request is documented. | Washington RPC 1.15A(i)(2)-(3); Comment 14 |
| Use an authorized insured institution | Select a financial institution authorized by the Legal Foundation of Washington. Trust deposits must have qualifying FDIC or NCUA insurance or permitted U.S. government backing. | Washington RPC 1.15A(i); ELC 15.7 |
| Keep lawyer funds out except permitted amounts | Do not retain lawyer funds in trust except amounts reasonably sufficient for bank charges, mixed funds awaiting prompt withdrawal of the lawyer's portion, or funds necessary to restore an appropriate balance. | Washington RPC 1.15A(h)(1) |
| Deposit advances unless a valid fee exception applies | Deposit advance fees and expenses in trust and withdraw them only as earned or incurred, except for retainers or flat fees satisfying Washington RPC 1.5(f), including its written-agreement requirements. | Washington RPC 1.15A(c)(2); RPC 1.5(f) |
| Deposit receipts intact and restrict withdrawals | Deposit receipts intact. Make withdrawals only to a named payee, never to cash, using a check or electronic transfer; only a Washington-admitted lawyer or LLLT may be an authorized signatory. | Washington RPC 1.15A(h)(4)-(5), (9) |
| Reconcile on each statement or at least quarterly | Reconcile the check register to the bank statement and reconcile the check register to the combined client-ledger total whenever bank statements are generated, or at least quarterly. | Washington RPC 1.15A(h)(6) |
| Wait for collected funds and protect every client balance | Do not disburse until deposits clear and are collected unless a compliant written guarantee agreement exists. Never disburse more than the individual client has on deposit or use one client's funds for another. | Washington RPC 1.15A(h)(7)-(8) |
| Maintain the complete required record set | Keep a current check register, individual client ledgers, fee agreements, accountings, bills, supporting invoices, bank records, reconciliation records, and file portions needed to understand every financial transaction. | Washington RPC 1.15B(a) |
| Retain trust-account records for seven years | Preserve all records required by RPC 1.15B for at least seven years after the events they record and make appropriate arrangements when a practice change affects the account. | Washington RPC 1.15B(a)-(b) |
| Notify, account, deliver, and resolve disputes | Promptly notify owners of received property, provide a written accounting after distribution or on request and at least annually while holding funds, deliver property promptly, and safeguard disputed amounts while distributing undisputed portions. | Washington RPC 1.15A(d)-(g) |
| File the annual Trust Account Declaration | Every active Washington licensed legal professional must personally provide the required Trust Account Declaration annually, even if not practicing or not maintaining a trust account. | WSBA license-renewal guidance; ELC requirements |
| Report overdrafts promptly | If a trust account is overdrawn or an item is presented against insufficient funds, promptly notify WSBA disciplinary counsel and provide a full explanation; the financial institution also reports the event. | ELC 15.4; Washington RPC 1.15A Comment 20 |
Official sources
The authoritative material for this jurisdiction. Confirm every requirement here before acting on it.
Washington Courts — RPC 1.15A Safeguarding Property
Official rule covering segregation, IOLTA selection, account operations, reconciliation, collected funds, accounting, and disputes.
OpenWashington Courts — RPC 1.15B Required Trust Account Records
Official detailed recordkeeping rule and seven-year retention requirement.
OpenWashington State Bar Association — IOLTA and Client Trust Accounts
Official hub for rules, authorized institutions, ledger tools, overdrafts, and random examinations.
OpenWSBA — IOLTA Lawyer Trust Accounting FAQ
Official practical FAQ on deposits, disbursements, records, unclaimed funds, and reconciliation.
OpenWSBA — Trust Account Declaration and License Renewal FAQ
Official annual-declaration and multijurisdictional-account guidance.
OpenLegal Foundation of Washington — Authorized Financial Institutions
Official certification list for institutions permitted to hold Washington IOLTA and other trust funds.
OpenNotes
- Washington's reconciliation rule is precise: reconcile as often as statements are generated or at least quarterly, and perform both the bank-to-register and register-to-combined-client-ledger comparisons.
- Washington lawyers must file an individual annual Trust Account Declaration. A firm cannot substitute one firm-level filing, and active members file even when they have no trust account.
- Washington imposes dual overdraft notice: the institution reports an overdraft or insufficient-funds presentment, and the lawyer must also promptly notify WSBA disciplinary counsel with a full explanation.
Washington — Frequently asked
Common questions for Washington trust accounts. General information only — verify against the official sources above.
Who needs a Washington client trust account?
A lawyer needs one when handling client or third-party funds connected with work undertaken using the Washington license. A lawyer who receives only earned fees and no client funds may not need an account.
Which funds belong in Washington IOLTA?
Funds that, because of amount, expected duration, rates, and administration costs, will not produce a positive net return for the individual client or third person.
Who receives Washington IOLTA interest?
The financial institution pays it to the Legal Foundation of Washington, which administers the IOLTA program and supports civil legal aid.
What if funds can earn a positive net return?
Use a separate interest-bearing account for that client or a pooled account with subaccounting that calculates and pays each owner's interest.
May a client request IOLTA even for net-positive funds?
Yes. RPC 1.15A permits that request, but the lawyer should document it in the trust records and preferably confirm it in writing.
Where may a Washington IOLTA be opened?
Only at a financial institution authorized by the Legal Foundation of Washington and satisfying the insurance, agreement, and program requirements.
How often must Washington trust accounts be reconciled?
Whenever bank statements are generated, or at least quarterly. The required process reconciles the bank statement, check register, and combined client-ledger total.
Is a monthly reconciliation always required?
If the bank issues monthly statements, yes—the rule ties reconciliation to statement generation. In any event, the interval may not exceed a quarter.
What records must be maintained?
At minimum: a transaction register, individual client ledgers, fee agreements, client accountings, bills and supporting invoices, bank statements and deposit records, cancelled checks or equivalents, reconciliation records, and relevant file portions.
How long must Washington trust records be kept?
At least seven years after the events the records document.
May trust receipts be split before deposit?
No. Washington requires receipts to be deposited intact, with later authorized disbursements accurately recorded.
Can a trust-account withdrawal be payable to cash?
No. Withdrawals must be to a named payee and made by check or electronic transfer.
Who may sign on a lawyer trust account?
Only a lawyer admitted to practice law or a Washington LLLT may be an authorized signatory under RPC 1.15A(h)(9).
When can a recent deposit be disbursed?
After it clears and is collected, unless the lawyer and bank have the specific written guarantee arrangement permitted by RPC 1.15A. A client may never be paid from another client's balance.
Where do advance fees go?
Ordinarily into trust until earned. Washington RPC 1.5(f) has specific exceptions for a properly documented true retainer or flat fee; the signed writing and required disclosures matter.
What accounting is owed to a client or third person?
Provide a written accounting promptly after distribution or on request, and at least annually for anyone whose funds the lawyer continues to hold.
What happens to disputed funds?
Keep the disputed portion in trust, promptly distribute undisputed funds, and take reasonable steps to resolve the dispute, including interpleader where appropriate.
Does every active lawyer file a Trust Account Declaration?
Yes. WSBA states that each active licensed legal professional must file annually, even if not practicing or not maintaining a trust account.
What happens after an overdraft or insufficient-funds presentment?
The bank reports it, and the lawyer must also promptly notify WSBA disciplinary counsel with a full explanation. The event may trigger a grievance investigation.
Can WSBA inspect trust records without a client complaint?
Yes. Washington's enforcement rules authorize random examinations of lawyer and law-firm books and records for compliance with RPC 1.15A and 1.15B.