Washington IOLTA Compliance: Trust Account Rules & Requirements
Complete guide to Washington's IOLTA compliance requirements. Covers reconciliation rules, record retention periods, overdraft notification requirements, and how Disbo automates compliance for Washington law firms under Washington Rules of Professional Conduct Rule 1.15A; Rule 1.15B.
Reconciliation
Monthly
Record Retention
7 years
Overdraft Notice
Required
Interest Remittance
IOLTA Program
Washington IOLTA Requirements at a Glance
Key trust account rules under Washington Rules of Professional Conduct Rule 1.15A; Rule 1.15B
| Requirement | Washington Rule |
|---|---|
| Reconciliation Frequency | Monthly three-way reconciliation |
| Record Retention Period | 7 years |
| Overdraft Notification | Required — bank must notify Washington State Bar Association within 7 days |
| Interest Remittance | To Legal Foundation of Washington |
| Governing Rule | Washington Rules of Professional Conduct Rule 1.15A; Rule 1.15B |
| Client Ledger | Required — individual ledger per matter |
Source: Washington Bar Association · Washington IOLTA Program
Washington IOLTA Key Requirements
- Monthly reconciliation required under RPC 1.15A and 1.15B
- 7-year retention of all trust records
- Running balance required on all records
- WSBA must receive overdraft notification within 7 days
- IOLTA accounts at Legal Foundation of Washington-approved banks
Washington IOLTA Note
Washington has a dual-rule framework (RPC 1.15A and 1.15B) that governs different aspects of trust accounting. The 7-year retention requirement and running balance requirements are strictly enforced. The Legal Foundation of Washington administers IOLTA interest distributions.
Common IOLTA Violations in Washington
These are the most frequently cited IOLTA violations for Washington law firms. Each one can trigger bar discipline — and each is preventable with the right software.
- Failure to comply with both RPC 1.15A and 1.15B requirements
- Missing running balance on trust account records
- Failure to retain records for the full 7-year period
- Commingling client trust and operating funds
- Late overdraft notification beyond 7-day window
How Disbo Keeps Your Washington Firm IOLTA Compliant
Disbo's rules engine applies Washington's specific IOLTA requirements — including Washington Rules of Professional Conduct Rule 1.15A; Rule 1.15B — 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 Washington.
Automated Three-Way Reconciliation
Continuous reconciliation runs behind the scenes. Monthly reconciliation records are generated automatically and stored for 7 years.
One-Click Audit Package
If the Washington Bar initiates an audit, generate a complete audit package — ledgers, reconciliation reports, disbursement records — in under 60 seconds.
7 years Immutable Audit Trail
Every trust account event is timestamped, logged, and retained for 7 years — meeting Washington'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
Washington IOLTA Compliance FAQ
What rule governs IOLTA trust accounts in Washington?
Washington IOLTA trust accounts are governed by Washington Rules of Professional Conduct Rule 1.15A; Rule 1.15B. This rule sets the requirements for reconciliation frequency, record retention, client ledger maintenance, overdraft notification, and interest remittance to the Washington IOLTA program.
How often must Washington attorneys reconcile their IOLTA accounts?
Washington 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 Washington attorneys retain IOLTA records?
Washington attorneys must retain all IOLTA trust account records — including bank statements, client ledgers, reconciliation reports, and disbursement documentation — for 7 years under Washington Rules of Professional Conduct Rule 1.15A; Rule 1.15B. Disbo retains all records automatically for the required period.
What happens if a Washington IOLTA account is overdrawn?
Required — bank must notify Washington State Bar Association within 7 days. 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 Washington IOLTA interest go?
To Legal Foundation of Washington. These funds support civil legal aid programs for low-income residents throughout Washington. All IOLTA accounts must be at approved financial institutions that forward interest to the Washington IOLTA program.
See How Disbo Keeps Your Washington Firm Compliant
Stop managing Washington IOLTA compliance with spreadsheets. Disbo enforces Washington Rules of Professional Conduct Rule 1.15A; Rule 1.15B automatically — negative balance prevention, three-way reconciliation, and audit-ready records built in from day one.
No credit card required. Setup in minutes.