When law firms are required to hold clients’ funds, they are placed in a trust account separate from the law firm’s funds. These firms can combine these client funds into a pooled, interest-bearing account called an Interest on Lawyers’ Trust Account (IOLTA).
The interest earned on IOLTA funds is combined and distributed (in Oregon by the Oregon Law Foundation and in Washington by the Legal Foundation of Washington) to support improving the justice system and provide civil legal aid to low-income individuals who cannot afford legal services and assistance. In Oregon, it is also used to promote diversity in the legal profession and educate the public about the law. In 2022, OnPoint’s IOLTA interest payments to law foundations totaled $132,000!