Wisconsin IOLTA Compliance: Trust Account Rules & Requirements
Complete guide to Wisconsin's IOLTA compliance requirements. Covers reconciliation rules, record retention periods, overdraft notification requirements, and how Disbo automates compliance for Wisconsin law firms under Wisconsin Supreme Court Rules SCR 20:1.15.
Reconciliation
Monthly
Record Retention
7 years
Overdraft Notice
Required
Interest Remittance
IOLTA Program
Wisconsin IOLTA Requirements at a Glance
Key trust account rules under Wisconsin Supreme Court Rules SCR 20:1.15
| Requirement | Wisconsin Rule |
|---|---|
| Reconciliation Frequency | Monthly three-way reconciliation |
| Record Retention Period | 7 years |
| Overdraft Notification | Required — bank must notify Office of Lawyer Regulation |
| Interest Remittance | To Wisconsin Trust Account Foundation (WisTAF) |
| Governing Rule | Wisconsin Supreme Court Rules SCR 20:1.15 |
| Client Ledger | Required — individual ledger per matter |
Wisconsin IOLTA Key Requirements
- Monthly reconciliation required under SCR 20:1.15
- 7-year retention of all trust records
- Office of Lawyer Regulation overdraft notification required
- IOLTA accounts at WisTAF-approved financial institutions
- Specific SCR 20:1.15 formatting requirements apply
Wisconsin IOLTA Note
Wisconsin's trust accounting is governed by SCR 20:1.15, which has specific formatting and documentation requirements. The 7-year retention requirement applies to all trust records. WisTAF (Wisconsin Trust Account Foundation) administers IOLTA interest distributions.
Common IOLTA Violations in Wisconsin
These are the most frequently cited IOLTA violations for Wisconsin law firms. Each one can trigger bar discipline — and each is preventable with the right software.
- Failure to retain records for the mandatory 7-year period
- Non-compliance with specific SCR 20:1.15 requirements
- Missing monthly reconciliation documentation
- Commingling client trust and firm operating funds
- Failure to notify Office of Lawyer Regulation of overdrafts
How Disbo Keeps Your Wisconsin Firm IOLTA Compliant
Disbo's rules engine applies Wisconsin's specific IOLTA requirements — including Wisconsin Supreme Court Rules SCR 20:1.15 — 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 Wisconsin.
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 Wisconsin 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 Wisconsin'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
Wisconsin IOLTA Compliance FAQ
What rule governs IOLTA trust accounts in Wisconsin?
Wisconsin IOLTA trust accounts are governed by Wisconsin Supreme Court Rules SCR 20:1.15. This rule sets the requirements for reconciliation frequency, record retention, client ledger maintenance, overdraft notification, and interest remittance to the Wisconsin IOLTA program.
How often must Wisconsin attorneys reconcile their IOLTA accounts?
Wisconsin 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 Wisconsin attorneys retain IOLTA records?
Wisconsin attorneys must retain all IOLTA trust account records — including bank statements, client ledgers, reconciliation reports, and disbursement documentation — for 7 years under Wisconsin Supreme Court Rules SCR 20:1.15. Disbo retains all records automatically for the required period.
What happens if a Wisconsin IOLTA account is overdrawn?
Required — bank must notify Office of Lawyer Regulation. 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 Wisconsin IOLTA interest go?
To Wisconsin Trust Account Foundation (WisTAF). These funds support civil legal aid programs for low-income residents throughout Wisconsin. All IOLTA accounts must be at approved financial institutions that forward interest to the Wisconsin IOLTA program.
See How Disbo Keeps Your Wisconsin Firm Compliant
Stop managing Wisconsin IOLTA compliance with spreadsheets. Disbo enforces Wisconsin Supreme Court Rules SCR 20:1.15 automatically — negative balance prevention, three-way reconciliation, and audit-ready records built in from day one.
No credit card required. Setup in minutes.