What Happens to Your IOLTA Trust Account Account When You Die
Quick Facts
Funds
Client funds only — not estate assets
Action
Contact state bar immediately
Deadline
Act within days
Step-by-Step Guide
Contact the state bar ethics hotline
Call the state bar's ethics or lawyer assistance hotline immediately. IOLTA accounts hold client funds in trust and are NOT estate assets. The bar will provide guidance on proper handling.
Notify the bank
Contact the bank holding the IOLTA account to freeze the account and prevent unauthorized transactions. Provide a death certificate and your authority as estate representative.
Reconcile all client funds
Match every dollar in the IOLTA account to a specific client matter. Each client's funds must be returned or transferred to successor counsel as directed.
Distribute client funds
Return funds to each client or transfer to their new attorney as instructed. Document every disbursement. The state bar may assign a custodian to oversee this process.
Document Now Checklist
- IOLTA bank name and account number
- Current account balance
- Client ledger (breakdown of funds by client)
- State bar ethics hotline phone number
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Start your vault — free for 30 daysLast verified: June 2026. Platform policies may change. Verify current procedures directly with IOLTA Trust Account. This guide is for informational purposes only and does not constitute legal advice.
Related Guides
Social Security
Social Security must be notified of death immediately. Benefits paid after death must be returned. Survivor benefits may be available.
IRS / Tax Returns
A final individual tax return must be filed for the year of death. Estates over $13.61M may owe federal estate tax.
Veterans Affairs (VA)
Veterans are entitled to burial benefits, a headstone or marker, a burial flag, and Presidential Memorial Certificate — all at no cost.
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