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Legal News

: Fastcase Legal News

Bank Failure, the FDIC, and your IOLTA Account

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The Texas Bar homepage is linking to a memo about the heightened and ongoing importance of monitoring client trust accounts.  Check it out for a refresher on how your clients' individual accounts relate to their money in your trust account under FDIC federal insurance rules.   Also, find the answers to common questions like:
Q. Do I have to do anything special to ensure my client trust account is treated as a fiduciary account for FDIC insurance purposes, or does it automatically qualify?
Q. Should I warn Client A that he may not be fully insured?
Q. With all the economic problems with banks, can I establish my trust account at a
credit union?
Read the memo here.
Read basic FDIC insurance information here.

Full post as published by Fastcase Legal News on December 02, 2008 (boomark / email).

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