Indiana IOLTA Compliance: Trust Account Rules & Requirements
Complete guide to Indiana's IOLTA compliance requirements. Covers reconciliation rules, record retention periods, overdraft notification requirements, and how Disbo automates compliance for Indiana law firms under Indiana Rules of Professional Conduct Rule 1.15.
Reconciliation
Monthly
Record Retention
5 years
Overdraft Notice
Required
Interest Remittance
IOLTA Program
Indiana IOLTA Requirements at a Glance
Key trust account rules under Indiana Rules of Professional Conduct Rule 1.15
| Requirement | Indiana Rule |
|---|---|
| Reconciliation Frequency | Monthly three-way reconciliation |
| Record Retention Period | 5 years |
| Overdraft Notification | Required — bank must report overdrafts to Indiana Supreme Court |
| Interest Remittance | To Indiana Bar Foundation |
| Governing Rule | Indiana Rules of Professional Conduct Rule 1.15 |
| Client Ledger | Required — individual ledger per matter |
Source: Indiana Bar Association · Indiana IOLTA Program
Indiana IOLTA Key Requirements
- Monthly reconciliation required with written records
- Separate client ledger required per matter
- Overdraft reports to Indiana Supreme Court required
- IOLTA accounts at Indiana Bar Foundation-approved banks
- 5-year retention of all trust account records
Indiana IOLTA Note
Indiana routes overdraft notifications to the Indiana Supreme Court, which has direct disciplinary authority. The Indiana Bar Foundation administers the IOLTA program and conducts annual outreach to participating attorneys.
Common IOLTA Violations in Indiana
These are the most frequently cited IOLTA violations for Indiana law firms. Each one can trigger bar discipline — and each is preventable with the right software.
- Missing individual client matter ledgers
- Incomplete monthly reconciliation documentation
- Disbursing funds before cleared funds available
- Commingling client and firm operating funds
- Failure to notify Indiana Supreme Court of overdraft events
How Disbo Keeps Your Indiana Firm IOLTA Compliant
Disbo's rules engine applies Indiana's specific IOLTA requirements — including Indiana Rules of Professional Conduct Rule 1.15 — automatically to every trust account transaction. Stop managing compliance manually. Let Disbo enforce the rules so your team can focus on clients.
Negative Balance Prevention
Disbo blocks any disbursement that would overdraw a client's trust balance — eliminating the #1 IOLTA violation in Indiana.
Automated Three-Way Reconciliation
Continuous reconciliation runs behind the scenes. Monthly reconciliation records are generated automatically and stored for 5 years.
One-Click Audit Package
If the Indiana Bar initiates an audit, generate a complete audit package — ledgers, reconciliation reports, disbursement records — in under 60 seconds.
5 years Immutable Audit Trail
Every trust account event is timestamped, logged, and retained for 5 years — meeting Indiana's retention requirement automatically.
Monthly Reconciliation Status
Bank Balance
$124,500
Trust Ledger
$124,500
Client Totals
$124,500
Recent Trust Activity
Smith v. Acme
Settlement Receipt
Smith v. Acme
Attorney Fees
Smith v. Acme
Medical Lien Payment
Jones Matter
Settlement Receipt
Indiana IOLTA Compliance FAQ
What rule governs IOLTA trust accounts in Indiana?
Indiana IOLTA trust accounts are governed by Indiana Rules of Professional Conduct Rule 1.15. This rule sets the requirements for reconciliation frequency, record retention, client ledger maintenance, overdraft notification, and interest remittance to the Indiana IOLTA program.
How often must Indiana attorneys reconcile their IOLTA accounts?
Indiana attorneys must complete a three-way reconciliation of their IOLTA trust accounts monthly. Three-way reconciliation compares the bank statement balance, the trust account ledger balance, and the sum of all individual client ledger balances — all three must match.
How long must Indiana attorneys retain IOLTA records?
Indiana attorneys must retain all IOLTA trust account records — including bank statements, client ledgers, reconciliation reports, and disbursement documentation — for 5 years under Indiana Rules of Professional Conduct Rule 1.15. Disbo retains all records automatically for the required period.
What happens if a Indiana IOLTA account is overdrawn?
Required — bank must report overdrafts to Indiana Supreme Court. An overdraft notification triggers a disciplinary review process. Attorneys must ensure sufficient cleared funds are in the trust account before any disbursement. Disbo blocks transactions that would create a negative balance before they process.
Where does Indiana IOLTA interest go?
To Indiana Bar Foundation. These funds support civil legal aid programs for low-income residents throughout Indiana. All IOLTA accounts must be at approved financial institutions that forward interest to the Indiana IOLTA program.
See How Disbo Keeps Your Indiana Firm Compliant
Stop managing Indiana IOLTA compliance with spreadsheets. Disbo enforces Indiana Rules of Professional Conduct Rule 1.15 automatically — negative balance prevention, three-way reconciliation, and audit-ready records built in from day one.
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