Ethics Forum: Questions and Answers on Professional Responsibility
I have heard in ethics seminars about qualified and nonqualified funds. I am not sure what they mean. Can you tell me?
February 02, 2023 at 11:13 AM
7 minute read
EthicsQualified funds must go into an IOLTA account and nonqualified funds must be put into an interest-bearing escrow account.
I have heard in ethics seminars about qualified and nonqualified funds. I am not sure what they mean. Can you tell me?
The question of what are qualified funds and what are not is fairly straightforward. The bottom line is that qualified funds have to be put in ones IOLTA account. Nonqualified funds cannot be put in the IOLTA account, but must be put in an interest-bearing escrow account. The definitions are found at Rule 1.15(a)(8) and (a)(9) of the Rules of Professional Conduct. Qualified funds are defined as follows, "Funds which are nominal in amount or are reasonably expected to be held for such a short period of time that sufficient income will not be generated to justify the expense of administering a segregated account." See Rule 1.15(a)(9) of the Rules of Professional Conduct.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1The Law Firm Disrupted: Playing the Talent Game to Win
- 2A&O Shearman Adopts 3-Level Lockstep Pay Model Amid Shift to All-Equity Partnership
- 3Preparing Your Law Firm for 2025: Smart Ways to Embrace AI & Other Technologies
- 4BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 5A RICO Surge Is Underway: Here's How the Allstate Push Might Play Out
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250