Kentucky · Trust Accounting

Kentucky IOLTA Trust Account Rules

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

Kentucky Trust Account Requirements at a Glance

Governing rule

Kentucky Supreme Court Rule 3.130(1.15) (Safekeeping property); IOLTA program established by SCR 3.830

Reconciliation required

Not specified by rule

Record retention

5 years

Regulator

Kentucky Bar Association Office of Bar Counsel

IOLTA program

Kentucky IOLTA Fund

Bank overdraft reporting

Required — banks must notify the regulator

Source: Kentucky Bar Association Office of Bar Counsel . Rules change — always confirm against the current text before relying on it.

Three-Way Reconciliation in Kentucky

Kentucky's stated reconciliation requirement is: Not specified by rule. 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 Kentucky Attorneys Must Keep, and for 5 Years

Kentucky 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 Kentucky Bar Association Office of Bar 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 Kentucky Trust Account Rules

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

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