Trust Account

I opened my trust account at the same time I opened my business operating account. According to the State Bar of California:

“[l]awyers who handle small amounts of money for their clients, or money that is held for a short period of time, must . . . deposit[] these funds into an Interest on Lawyers’ Trust Account (IOLTA).”  (

For most new solos, this will probably apply to most funds held in a trust account. A list of banks eligible to provide IOLTA accounts is available at

When opening an IOLTA account, an attorney will need to provide the bank with

Additionally, attorneys must update their state bar profiles when a new trust account is opened. Ensuring proper accounting of an IOLTA/trust account is beyond the scope of this Toolkit, but resources are available on the state bar website. I find myself using my trust account less and less frequently, as I rely more on credit cards for payment and security.