California · Trust Accounting

California IOLTA Trust Account Rules

What California attorneys must do to keep client trust funds compliant — the governing rule, how often you must reconcile, and how long records must be kept.

California Trust Account Requirements at a Glance

Governing rule

California Rules of Professional Conduct, Rule 1.15 (Safekeeping Funds and Property of Clients and Other Persons); trust account registration and certification under the Client Trust Account Protection Program (CTAPP)

Reconciliation required

Monthly (per State Bar standards adopted under Rule 1.15)

Record retention

5 years

Regulator

The State Bar of California, Office of Chief Trial Counsel

IOLTA program

Legal Services Trust Fund Program

Bank overdraft reporting

Required — banks must notify the regulator

Source: The State Bar of California, Office of Chief Trial Counsel . Rules change — always confirm against the current text before relying on it.

Three-Way Reconciliation in California

California's stated reconciliation requirement is: Monthly (per State Bar standards adopted under Rule 1.15). A three-way reconciliation compares three totals that must all agree. If they do not, the difference has to be found and resolved before the reconciliation is complete.

1

Adjusted bank balance

Bank statement balance, adjusted for outstanding checks and deposits in transit.

2

Trust register balance

Your internal trust account register as of the same date.

3

Sum of client ledgers

The total of every individual client ledger balance on that date.

For a full walkthrough of the procedure, common violations, and what examiners look for, see our IOLTA compliance guide.

What California Attorneys Must Keep, and for 5 Years

California requires trust account records to be retained for 5 years. In practice that means keeping:

This page is a summary, not legal advice. IOLTA Guard is not a law firm. Confirm current requirements with the The State Bar of California, Office of Chief Trial Counsel — rules change, and your obligations as the attorney of record are yours alone.

Trust Account Rules in Other States

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Stay Compliant with California Trust Account Rules

IOLTA Guard automates three-way reconciliation, blocks negative client ledgers, and keeps the audit trail California attorneys are expected to maintain.

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