FAQ for Attorneys

The Nebraska Supreme Court adopted the conversion of the Voluntary Interest On Lawyers Trust Accounts (IOLTA) Program to an Opt-out Program in December 1992. The Opt-out Program became effective January 1, 1993. Under the Code of Professional Responsibility, Disciplinary Rule Article 9 – Trust Fund Requirements for Lawyers a lawyer or law firm wanting to opt-out must file a Notice of Declination with the Chief Justice of the Supreme Court or his/her designee for that year.

  • What is the IOLTA Program?

    All lawyers who practice in Nebraska are required to place their “pooled” nominal and/or short-term client funds into interest-bearing IOLTA accounts.

  • What type of IOLTA program does Nebraska have?

    Nebraska has an Opt-out Program. There are currently 53 IOLTA Programs in the United States: 1 state has a Voluntary Program, 5 states are Opt-out Programs, and 47 states have Mandatory Programs.

  • How much lawyer time and money will participating in the IOLTA Program involve?

    No time and no money. The mechanics of converting to an IOLTA account are simple. Once the online certification is completed on the Court’s website, no further effort is required by the lawyer.

  • What if I wish to "opt-out" of the program?

    If you choose not to participate in the program, a written Notice of Declination will need to be filed with the Chief Justice or his/her designee of the Supreme Court by February 15th each year.

  • Is there a notice of Declination form?

    No. There is no designated form to use in filing a Notice of Declination. Rather, a lawyer desiring to opt-out must prepare his or her own Notice of Declination and mail it in letter form to the Chief Justice.

  • Who pays the service charges or fees for the IOLTA account?

    Bank service charges are paid from the interest earned by the IOLTA account. Under no circumstances is the account principal charged nor the lawyer billed for IOLTA expenses.

  • What if my account balance is low?

    Lawyers need not be concerned with this issue. IOLTA reserves the right to exempt from active IOLTA participation those trust accounts with small balances that will cost the IOLTA Program more in service charges than will be generated in interest.

  • Can lawyers still deposit individual client funds into accounts which pay interest that can be passed on to the client?

    Yes. Lawyers are expected and encouraged to continue the customary practice of establishing separate, interest-bearing accounts for individual clients' funds when the sum is large enough or the duration is long enough to justify the cost of opening, administering, and closing the account. Any interest accrued becomes the property of the client. If clients request their money be placed in a separate trust account, the lawyer is ethically bound to fulfill the clients' request.

  • What if I do not have a non-interest-bearing client trust account?

    Lawyers who do not hold client funds in a non-interest-bearing client trust account are exempt from the provisions of this Rule. The Supreme Court’s online system offers a “No” option to confirm that you do not handle client funds.

    Trust Account Certification Form.