Introduction
A lawyer may end up with client and third party funds in his or her possession in a variety of ways. Probably the most common way is for a lawyer to receive a settlement or judgment check made payable to the lawyer, his or her client, and a subrogation lien holder in a personal injury action. Lawyers also end up with client and third party funds in other ways. In a divorce, a lawyer may be asked by the court to sell the real estate and hold the funds from the sale of the real estate until the court makes its final decision on the property settlement. A lawyer may also ask a client to give him an advance on the lawyer’s fee and bill against this advance on an hourly basis. Another common way for lawyers to end up with client funds is for the lawyer to ask a client to give him or her an advance to pay the expenses of litigating a case.
These examples are not a comprehensive list of how a lawyer ends up with client and/or third party funds. There are numerous other ways that a lawyer may end up with client and/or third party funds in his or her possession. Because of their duties as fiduciaries, lawyers must treat these funds with special care. This special care begins with lawyers properly designating funds as belonging to the lawyer, the client, and to a third party. Lawyers’ fiduciary duties also require lawyers to properly maintain client funds and third party funds separate from the lawyer’s funds in a trust account. Lawyers’ fiduciary duties are spelled out in several rules.
- Prof. Cond. R. 1.15: Safekeeping Property
- Prof. Cond. R. 1.16(d): Duty to refund unearned fees at the termination of representation
- Prof. Cond. R. 5.1: Responsibilities of a Partner or Supervisory Lawyer
- Prof. Cond. R. 5.2: Responsibilities of a Subordinate Lawyer
- Prof. Cond. R. 5.3: Responsibilities Regarding Nonlawyer Assistants
- Prof. Cond. R. 8.4(b): Misconduct; criminal acts
- Prof. Cond. R. 8.4(c): Misconduct; dishonesty, fraud, deceit or misrepresentation
- Indiana Code 35-43-4-2: Theft * I.C. 35-43-4-3: Conversion
- Admis. Disc. R. 23, §29(a): Trust Account Recordkeeping Requirements
- Admis. Disc. R. 23, §29(b) through (g): Trust Account Overdraft Notification
- Admis. Disc. R. 23, §30: Audits of Trust Accounts
- Rules Governing Attorney Trust Account Overdraft Reporting
Learn more about managing an attorney trust account in our continuing legal education guide: Trust Account Management: Handling Client And Third Party Funds
Trust Account Forms
- Attorney Trust Account Notification [Lawyers must use this form to notify their banks that their non-IOLTA trust accounts are subject to overdraft reporting.]
- IOLTA Forms from the Admission & Discipline Rules
Approved Financial Institutions for Trust Accounts
| Name of Institution | City (Principal Office) | State (Principal Office) | Approved on |
|---|---|---|---|
| A.G. Edwards Inc. | St. Louis | MO | 9/19/2005 |
| Alerus Financial, N.A. | Grand Forks | ND | 6/12/2017 |
| Alliance Bank | Francesville | IN | 1/27/2006 |
| Ameriana Bank & Trust, SB | New Castle | IN | 10/5/2005 |
| Bank of America | Egg Harbor City | NJ | 11/3/2008 |
| Bank of Geneva | Geneva | IN | 10/7/2005 |
| Banterra Bank | Eldorado | IL | 11/13/2015 |
| Bar-Cons Federal Credit Union | Columbus | IN | 10/7/2005 |
| Beacon Credit Union | Wabash | IN | 10/17/2005 |
| Bedford Federal Savings Bank | Bedford | IN | 10/25/2006 |
| Bippus State Bank | Huntington | IN | 1/13/2006 |
| Bloom Bank | Bloomfield | IN | 11/24/2015 |
| BMO Harris Bank N.A. | Milwaukee | WI | 2/24/2016 |
| Boonville Federal Savings Bank | Boonville | IN | 10/27/2015 |
| Branch Banking & Trust Company | Lumberton | NC | 11/2/2015 |
| Campbell & Fetter Bank | Kendallville | IN | 10/9/2015 |
| Carrollton Bank | Carrollton | IL | 12/4/2007 |
| Centier Bank | Merrillville | IN | 8/29/2005 |
| Centra Credit Union | Columbus | IN | 5/9/2018 |
| Central National Bank & Trust Company | Attica | IN | 8/27/2005 |
| CentreBank | Veedersburg | IN | 8/27/2005 |
| Centurion Federal Credit Union | Evansville | IN | 10/14/2005 |
| CF Bank | Worthington | OH | 5/24/2022 |
| CIBM Bank | Champaign | IL | 7/5/2023 |
| Choice Financial Group | Golden Valley | MN | 2/2/2021 |
| Citizens Bank | Mooresville | IN | 10/27/2015 |
| Citizens Exchange Bank | Fairmount | IN | 10/9/2015 |
| Citizens Financial Bank | Munster | IN | 9/29/2005 |
| Citizens State Bank | New Castle | IN | 9/19/2005 |
| Commerce Bank | Evansville | IN | 1/22/2016 |
| Community First Bank | Corydon | IN | 9/27/2005 |
| Community First Bank & Trust | Hamilton | OH | 2/14/2006 |
| Community First Bank of Indiana | Kokomo | IN | 7/23/2019 |
| Community Link Federal Credit Union | Huntington | IN | 11/15/2005 |
| Community State Bank | Royal Center | IN | 9/4/2019 |
| Crossroads Bank | Wabash | IN | 2/8/2016 |
| Dearborn Savings Association | Lawrenceburg | IN | 1/30/2006 |
| DeMotte State Bank | DeMotte | IN | 11/9/2015 |
| Elkhart Community Bank | Elkhart | IN | 9/9/2005 |
| Encompass Federal Credit Union | Tipton | IN | 4/1/2019 |
| Esquire Bank | Garden City | NY | 9/14/2009 |
| Evansville Commerce Bank | Evansville | IN | 8/14/2006 |
| Farmers & Mechanics Federal Savings & Loan Assn. | Bloomfield | IN | 11/9/2015 |
| Farmers and Merchants Bank | Boswell | IN | 10/14/2005 |
| Farmers and Merchants State Bank | Archbold | OH | 5/15/2008 |
| Farmers Bank | Frankfort | IN | 9/22/2005 |
| Farmers Bank of Milton | Milton | KY | 2/21/2012 |
| Farmers State Bank | Brookston | IN | 10/17/2005 |
| Farmers State Bank | LaGrange | IN | 9/19/2005 |
| Farmers State Bank | Mentone | IN | 11/16/2015 |
| Farmers State Bank | New Madison | OH | 3/29/2022 |
| FCN Bank, National Association | Brookville | IN | 9/29/2005 |
| Field & Main Bank | Henderson | KY | 2/24/2021 |
| Fifth Third Bank | Madisonville | OH | 11/24/2015 |
| First Bank of Berne | Berne | IN | 10/17/2005 |
| First Bank Richmond, NA | Richmond | IN | 12/5/2005 |
| First Farmers Bank & Trust | Converse | IN | 2/13/2006 |
| First Federal Bank of the Midwest | Defiance | OH | 7/11/2007 |
| First Federal Savings & Loan Assn. | Greensburg | IN | 9/2/2005 |
| First Federal Savings Bank | Angola | IN | 12/7/2015 |
| First Federal Savings Bank | Huntington | IN | 1/4/2016 |
| First Federal Savings Bank | Rochester | IN | 9/1/2005 |
| First Federal Savings Bank | Wabash | IN | 9/19/2005 |
| First Federal Savings Bank – Main Office | Evansville | IN | 12/10/2015 |
| First Financial Bank | Cincinnati | OH | 1/8/2016 |
| First Financial Bank, NA | Terre Haute | IN | 9/19/2005 |
| First Harrison Bank | Palmyra | IN | 1/4/2016 |
| First Internet Bank of Indiana | Indianapolis | IN | 4/14/2015 |
| First Merchants Bank NA | Muncie | IN | 12/10/2015 |
| First Midwest Bank | Joliet | IL | 1/28/2016 |
| First National Bank | Cloverdale | IN | 9/27/2005 |
| First National Bank of Carmi | Mt. Vernon | IN | 12/22/2015 |
| First National Bank of Carmi | Carmi | IL | 11/9/2016 |
| First National Bank of Illinois | Lansing | IL | 10/24/2006 |
| First National Bank of Monterey | Monterey | IN | 12/8/2015 |
| First National Bank of Odon | Odon | IN | 9/1/2005 |
| First Savings Bank | Clarksville | IN | 12/11/2015 |
| First Savings Bank of Hegewsich | Chicago | IL | 9/11/2013 |
| First Security Bank, Inc. | Owensboro | IN | 12/11/2015 |
| First Source Bank | South Bend | IN | 11/15/2005 |
| First State Bank of Middlebury | Middlebury | IN | 1/4/2016 |
| First State Bank of Porter | Porter | IN | 1/20/2016 |
| First Vincennes Savings Bank | Vincennes | IN | 1/4/2012 |
| Flagstar Bank, FSB | Jackson | MI | 10/2/2018 |
| Fountain Trust Company | Covington | IN | 10/24/2005 |
| Fowler State Bank | Fowler | IN | 12/22/2015 |
| Friendship State Bank | Friendship | IN | 1/12/2016 |
| G.W. Jones Exchange Bank | Marcellus | MI | 1/4/2016 |
| Garrett State Bank | Garrett | IN | 10/24/2005 |
| General Electric Credit Union | Cincinnati | OH | 2/4/2019 |
| German American Bank | Jasper | IN | 1/4/2016 |
| Goshen Community Bank | Goshen | IN | 12/16/2005 |
| Grant County State Bank | Swayzee | IN | 1/20/2016 |
| Greenfield Banking Company | Greenfield | IN | 11/15/2005 |
| Harrison Building and Loan | Harrison | OH | 10/24/2005 |
| Hendricks County Bank & Trust Company | Brownsburg | IN | 10/31/2005 |
| Hicksville Bank | Hicksville | OH | 1/4/2013 |
| Home Bank SB | Martinsville | IN | 2/1/2016 |
| Home National Bank of Thorntown | Thorntown | IN | 9/19/2005 |
| Hoosier Heartland State Bank | Crawfordsville | IN | 1/21/2016 |
| Hoosier Trust Company | Indianapolis | IN | 11/30/2005 |
| Horizon Bank | Michigan City | IN | 1/20/2016 |
| Huntington National Bank | Columbus | OH | 12/27/2005 |
| iAB Financial Bank | Fort Wayne | IN | 1/12/2016 |
| Indiana Business Bank | Indianapolis | IN | 10/14/2005 |
| Indiana Members Credit Union | Indianapolis | IN | 1/25/2016 |
| Interra Credit Union | Goshen | IN | 9/22/2008 |
| Irwin Union Bank & Trust | Columbus | IN | 1/9/2006 |
| Jackson County Bank | Seymour | IN | 10/14/2005 |
| JPMorgan Chase Bank, NA | New York | NY | 2/14/2006 |
| Kentland Bank | Kentland | IN | 9/27/2005 |
| Key Bank | Brooklyn | OH | 2/3/2006 |
| Knisely Bank | Butler | IN | 10/14/2005 |
| Lafayette Community Bank | Lafayette | IN | 2/1/2016 |
| Lake City Bank | Warsaw | IN | 11/22/2005 |
| LaPorte Savings Bank | LaPorte | IN | 11/2/2005 |
| Legence Bank | Eldorado | IL | 2/1/2016 |
| LNB Community Bank | Lynnville | IN | 2/1/2016 |
| Logansport Savings Bank | Logansport | IN | 2/2/2016 |
| Luminate Bank | Minnetonka | MN | 5/9/2023 |
| M&I Marshall & Ilsley Bank | Brookfield | WI | 3/4/2008 |
| Madison County Federal Credit Union | Anderson | IN | 12/1/2005 |
| MainSource Bank | Crawfordsville | IN | 12/4/2006 |
| MainSource Bank | Greensburg | IN | 11/21/2005 |
| MainSource Bank | Hobart | IN | 12/4/2006 |
| MainSource Bank of IL | Kankakee | IL | 10/7/2005 |
| Marine Bank | Indianapolis | IN | 1/9/2017 |
| Merchants Bank & Trust Company | West Harrison | IN | 10/20/2005 |
| MFB Financial | Mishawaka | IN | 9/27/2005 |
| Mid-Southern Savings Bank | Salem | IN | 3/2/2016 |
| Mutual Bank | Muncie | IN | 9/18/2008 |
| Mutual Savings Bank | Franklin | IN | 11/8/2005 |
| Napoleon State Bank | Napoleon | IN | 10/17/2005 |
| National Bank of Indianapolis | Indianapolis | IN | 2/11/2016 |
| New Washington State Bank | Jeffersonville | IN | 11/22/2005 |
| North Salem State Bank | North Salem | IN | 10/20/2005 |
| Northwest Bank | Warren | PA | 6/18/2020 |
| Notre Dame Federal Credit Union | Notre Dame | IN | 3/20/2019 |
| Old National Bank | Evansville | IN | 12/27/2016 |
| Old Plank Trail Community Bank | Mokena | IL | 9/18/2013 |
| Optimum Bank | Ft. Lauderdale | FL | 1/19/2022 |
| Ossian State Bank | Ossian | IN | 11/21/2005 |
| Owen County State Bank | Spencer | IN | 10/14/2005 |
| Peoples Bank | Brownstown | IN | 6/19/2004 |
| Peoples Bank SB | Munster | IN | 2/17/2016 |
| Peoples State Bank | Ellettsville | IN | 10/6/2005 |
| Peoples Trust and Savings Bank | Boonville | IN | 10/20/2005 |
| Pinnacle Bank | Nashville | TN | 8/26/2019 |
| PNC Bank, NA | Philadelphia | PA | 1/26/2006 |
| Premier Bank | Youngstown | OH | 12/19/2022 |
| Private Bank and Trust Company | Chicago | IL | 1/26/2006 |
| Providence Bank & Trust | Dyer | IN | 2/17/2016 |
| Purdue Federal Credit Union | West Lafayette | IN | 7/25/2011 |
| Regions Bank | Decatur | IL | 1/27/2006 |
| Republic Bank & Trust Company | Louisville | KY | 1/19/2007 |
| Richmond City Employees FCU | Richmond | IN | 12/14/2005 |
| Riddell National Bank | Brazil | IN | 10/24/2005 |
| River Valley Financial Bank | Madison | IN | 10/14/2005 |
| Salin Bank and Trust Company | Indianapolis | IN | 10/17/2005 |
| Sand Ridge Bank | Hamilton | OH | 2/14/2006 |
| Security Federal Savings Bank | Logansport | IN | 2/22/2016 |
| Spencer County Bank | Santa Claus | IN | 10/18/2005 |
| Springs Valley Bank & Trust Company | Jasper | IN | 12/21/2005 |
| Standard Bank & Trust Company | Hickory Hills | IL | 1/10/2007 |
| Star Financial Bank | Ft. Wayne | IN | 12/27/2005 |
| State Bank of Lizton | Lizton | IN | 12/27/2005 |
| Stock Yards Bank & Trust Co. Inc. | Louisville | KY | 12/7/2005 |
| Symphony Bank | Indianapolis | IN | 7/31/2006 |
| Talmer West | Warren | OH | 2/24/2015 |
| Talmer West Bank | Goshen | IN | 1/27/2014 |
| TCF Bank | Midland | MI | 9/22/2020 |
| Terre Haute Savings Bank | Terre Haute | IN | 1/27/2006 |
| Three Rivers Federal Credit Union | Fort Wayne | IN | 5/9/2016 |
| Tri-County Bank & Trust Company | Roachdale | IN | 2/29/2016 |
| U.S. Bank | St. Paul | MN | 10/25/2005 |
| Union Federal Savings & Loan Association | Crawfordsville | IN | 1/23/2006 |
| Union Savings & Loan Association | Connersville | IN | 10/14/2005 |
| United Community Bank | Lawrenceburg | IN | 10/14/2005 |
| United Fidelity Bank FSB | Evansville | IN | 1/24/2006 |
| Wayne Bank and Trust Company | Richmond | IN | 10/17/2005 |
| Wells Fargo Bank Indiana N.A. | Fort Wayne | IN | 4/3/2006 |
| WesBanco Bank, Inc. | Wheeling | WV | 11/14/2016 |
| West End Bank | Richmond | IN | 12/21/2005 |
| Your Community Bank | New Albany | IN | 3/4/2016 |