Dodd-Frank unlimited lawyer IOTA funds FDIC deposit insurance provision apparently was not renewed by Congress and expired on 12/31/12 and only trust funds up to $250,000.00 per client ledger will be insured

Hello everyone and welcome to this Ethics Alert blog to advise everyone of the apparent expiration on December 31, 2012 of the Dodd-Frank Deposit FDIC Insurance provision which provided for the unlimited deposit insurance coverage for Interest on Lawyer Trust Accounts (IOLTAs) which are called IOTA trust accounts in Florida.

The federal insurance will now only cover up to $250,000.00 per client ledger within the lawyer’s trust account.  An FAQ post from the FDIC website is here: http://www.fdic.gov/deposit/deposits/unlimited/expiration.html

Bottom line:  If this affects your practice and your IOTA trust account liability, you should plan accordingly.  You can also contact your U.S. Representatives and Senators regarding reinstatement of the deposit insurance coverage.

Be careful out there!

Disclaimer: this e-mail does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2454 McMullen Booth Road, Suite 431

Clearwater, Florida 33759

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

 

 

 

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1 Comment

Filed under joe corsmeier, Lawyer trust accounts

One response to “Dodd-Frank unlimited lawyer IOTA funds FDIC deposit insurance provision apparently was not renewed by Congress and expired on 12/31/12 and only trust funds up to $250,000.00 per client ledger will be insured

  1. Reblogged this on California State Bar Defense by Megan Zavieh and commented:
    Be sure to look carefully at this sunset if you hold large amounts of funds in your trust account.

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