Unlimited FDIC Insurance for IOLTA Accounts to Expire

The American Bar Association is reporting that unless Congress takes action before Jan. 1, 2013, FDIC insurance available to IOLTA accounts will be $250,000 per owner of the funds (client), per financial institution, assuming that the account is properly designated as a trust account and proper accounting of each client's funds is maintained. Non-interest-bearing trust accounts also will have this level of coverage. For the last two years, IOLTA accounts have enjoyed unlimited FDIC insurance coverage but that protection is set to expire on Dec. 31. The ABA Governmental Affairs Office says it appears unlikely that lawmakers will take any further action on the issue this year. Learn more about the issue from the FDIC.