Money and liens
Trust account
A trust account, sometimes called an IOLTA account, is a separate bank account in which an attorney is required to hold client settlement funds until they are properly disbursed.
Attorneys may not mix client funds with their own. Doing so is one of the most serious violations in the profession.
The account is where your settlement sits while liens are negotiated, which is the usual explanation for a delay between settlement and payment.
Related terms
- Disbursement — Disbursement is the payment of settlement funds out of an attorney's trust account, following the order of attorney fees and costs, then liens, then the claimant's remaining share.
- Settlement — A settlement is an agreement resolving a claim for an agreed sum, in exchange for which the claimant signs a release permanently giving up the right to pursue it further.
- Post-settlement funding — Post-settlement funding is a cash advance taken after a case has settled but before the settlement money has actually been disbursed.
Need the money rather than the definition?
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