For what purposes can trust accounts be used by Ohio attorneys?

Trust accounts, also known as IOLTA accounts (Interest on Lawyers' Trust Accounts), are specifically designed to hold client funds that are entrusted to attorneys. This includes various types of funds such as retainers, settlements, and client payments. The primary function of a trust account is to segregate these client funds from the attorney's personal and operating funds to protect the clients' interests and ensure proper handling of their money.

Using trust accounts for client funds ensures that attorneys adhere to ethical standards and legal obligations regarding client property. When an attorney receives money on behalf of a client, it must be deposited into a trust account until it is earned or properly disbursed. This separation is crucial in maintaining the integrity of client funds and preventing commingling with the attorney's operational funds.

In contrast, using trust accounts for operating expenses, personal investments, or any other business-related expenses would violate the fiduciary duty an attorney has toward their clients. Such actions could lead to ethical violations, disciplinary action, or legal consequences, emphasizing the importance of proper trust account management exclusively for client funds.