Preparing for a Trust Account Audit
April 17, 2025
Building a System for Trust Account Compliance
April 24, 2025
State-Specific IOLTA Rules: What Georgia and Florida Lawyers Need to Know
Managing trust accounts is one of the biggest ethical responsibilities for attorneys, yet it’s where many lawyers slip up. If you don’t follow your state’s IOLTA rules, you could be looking at fines, disciplinary action, or even disbarment. In this guide, we’ll break down the specific IOLTA requirements in Georgia and Florida so you can keep your practice compliant and stress-free. Let’s get into it!
What is IOLTA (And Why Does It Matter)?
Every lawyer handling client funds has to decide:
Do I hold the money in a separate trust account? Or does it go into an IOLTA account?
IOLTA (Interest on Lawyers’ Trust Accounts) is for client funds that are small or will only be held short-term. Instead of just sitting in your trust account, the interest gets pooled and used to fund legal aid programs.The rules vary state by state, which is why we’re focusing on Georgia and Florida’s unique requirements below.
Georgia’s IOLTA Requirements
In Georgia, the management of client funds is governed by Rule 1.15 of the Georgia Rules of Professional Conduct. Here’s what you need to know:
Mandatory Participation 
- All attorneys practicing in Georgia who receive money or property on behalf of a client must maintain a trust account. Funds that are nominal in amount or held for a short duration should be placed in an IOLTA account, with the interest directed to the Georgia Bar Foundation. casetext.com+1casetext.com+1
Approved Financial Institutions 
- Attorneys are required to hold these accounts in financial institutions approved by the State Bar of Georgia. A list of such institutions is maintained and regularly updated to ensure compliance.
Record-Keeping and Overdraft Notifications 
- Lawyers must maintain meticulous records of all client funds. Additionally, approved financial institutions are obligated to report any overdrafts on these trust accounts to the State Bar, ensuring transparency and prompt corrective actions. casetext.com
Consequences of Non-Compliance 
- Failure to adhere to these regulations can lead to disciplinary actions, including suspension or disbarment. It’s imperative to manage client funds with the utmost care to uphold the integrity of the profession.
Florida’s IOLTA Framework
Florida’s approach to IOLTA is outlined in Rule 5-1.1 of the Rules Regulating The Florida Bar. Key aspects include:legalfuel.com+6thefloridabarfoundation.org+6thefloridabarfoundation.org+6
Mandatory Participation
- Attorneys practicing in Florida are required to place nominal or short-term client funds into IOLTA accounts. The interest from these accounts supports various legal aid organizations across the state.
Eligible Institutions and Comparability
- IOLTA accounts must be held at eligible institutions that offer interest rates comparable to those provided to non-IOLTA accounts. This ensures that the funds generate maximum possible interest to support legal aid services.
Notification and Compliance 
- Lawyers or law firms must inform the Florida Bar Foundation upon establishing an IOLTA account. This notification should include details such as the account number, the name of the lawyer or firm, and the financial institution’s information. fundingfla.org+1www-media.floridabar.org+1www-media.floridabar.org+1fundingfla.org+1
Use of Technology 
- To assist attorneys in managing their trust accounts efficiently and in compliance with regulations, resources like Nota offer cost-free access to trust accounting technology, tailored specifically for Florida lawyers. fundingfla.org
Real-Life Consequences of IOLTA Non-Compliance: Lessons from Georgia and Florida Attorneys
Georgia: A Cautionary Tale
Case Study: Attorney Steven Ryan Webster
- Background: In June 2022, Webster’s bank alerted the State Bar of Georgia to four bounced checks totaling $52,221.40 from his attorney trust account. Further investigation uncovered $400,000 in returned, unpaid checks. alabnews.com
- Outcome: The Supreme Court of Georgia disbarred Webster for these trust account violations. Georgia Bar+4alabnews.com+4georgialawnews.com+4
Key Takeaway: Meticulous management of client funds is non-negotiable. Regular audits and reconciliations are essential to prevent such violations.
Florida: High-Profile Violation
Attorney Natalie Renee Jones
- Background: During the COVID-19 pandemic, Jones used settlement funds from her trust account to avoid personal financial hardship after losing her primary job as a schoolteacher. abajournal.com
- Outcome: The Florida Supreme Court placed Jones on emergency suspension on September 16, 2024, for misusing client funds. alabnews.com+2abajournal.com+2apnews.com+2
Key Takeaway: Personal financial difficulties do not justify the misuse of client funds. Maintaining a clear boundary between personal and client finances is crucial.
Best Practices for Compliance
To ensure adherence to IOLTA regulations in both states:
- Stay Informed
: Regularly review updates from your state’s bar association regarding trust account management. - Detailed Record-Keeping
: Maintain accurate and comprehensive records of all transactions involving client funds. - Regular Reconciliations
: Perform monthly reconciliations of your trust accounts to promptly identify and address discrepancies. - Leverage Technology
: Utilize available tools and software designed to streamline trust account management and ensure compliance.
Final Thoughts: IOLTA Compliance Doesn’t Have to Be Hard
Let’s be real—managing trust accounts isn’t what you became a lawyer for. But if you don’t do it right, your career could be at risk.
That’s where Prestige Accounting & Consulting comes in.- We handle IOLTA reconciliations and compliance for attorneys—so you don’t have to stress about audits or violations.
- We help you meet Georgia & Florida Bar requirements to keep you in good standing.
- We make sure your trust accounts are airtight, accurate, and 100% compliant.
If you’re not 100% sure your trust accounts are audit-ready, let’s fix that NOW.
