Attorneys customarily accept funds from clients every now and then for safekeeping, whether it may be a payment for a legal work that is yet to be done or a money owed to a third party. If the money of the client is large enough to warrant an interest, it is deposited in a separate account. The interest earned from this account will be directly paid to the client. If Client’s money is small in amount and does not need to be held that long, it is deposited into a pooled interest-bearing account. This mechanism is called the Colorado IOLTA program. This program states that lawyers and law firms should deposit nominal or short-term funds of clients to a pooled dividend-earning account. These accumulated funds from different clients earn interests which are directly entrusted to the Colorado Lawyer Trust Account Foundation (COLTAF). This foundation is the one responsible in using these earned interests to help provide legal assistance to the less fortunate people and to improve the state’s justice system. Other than these, it also supports a lot of education programs that are law-related in nature.

A lot of people are able to benefit from this program. A misconception that was circulating before was that the interests of client’s funds go into the pockets of lawyers. Well, the answer is a big no. Lawyers cannot and must not use these earned interest for personal gain. This is against their code of ethics and is prohibited under the rules of the Supreme Court with regards to IOLTA programs.

That is why, clients no longer have to worry because their money is safe and secured in IOLTA system. Not only that, but they should also be grateful that their money is trying to generate interests that is helping a lot of indigenous people.