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