New York · Trust Accounting
What New York 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 York Rules of Professional Conduct 1.15 (22 NYCRR 1200.1.15); dishonored check and overdraft reporting under 22 NYCRR Part 1300
Not specified by rule
7 years
Appellate Division Attorney Grievance Committees
IOLA Fund of the State of New York
Required — banks must notify the regulator
Source: Appellate Division Attorney Grievance Committees . Rules change — always confirm against the current text before relying on it.
New York'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.
Bank statement balance, adjusted for outstanding checks and deposits in transit.
Your internal trust account register as of the same date.
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.
New York requires trust account records to be retained for 7 years. In practice that means keeping:
IOLTA Guard automates three-way reconciliation, blocks negative client ledgers, and keeps the audit trail New York attorneys are expected to maintain.