New Jersey · Trust Accounting

New Jersey IOLTA Trust Account Rules

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

New Jersey Trust Account Requirements at a Glance

Governing rule

New Jersey RPC 1.15 (Safekeeping Property); New Jersey Court Rule 1:21-6 (Recordkeeping)

Reconciliation required

Monthly

Record retention

7 years

Regulator

Office of Attorney Ethics, Supreme Court of New Jersey

IOLTA program

IOLTA Fund of the Bar of New Jersey

Bank overdraft reporting

Required — banks must notify the regulator

Source: Office of Attorney Ethics, Supreme Court of New Jersey . Rules change — always confirm against the current text before relying on it.

Three-Way Reconciliation in New Jersey

New Jersey requires attorneys to reconcile trust accounts monthly. 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 New Jersey Attorneys Must Keep, and for 7 Years

New Jersey requires trust account records to be retained for 7 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 Office of Attorney Ethics, Supreme Court of New Jersey — 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 New Jersey Trust Account Rules

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

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