What Is IOLTA?
All attorneys in Vermont are required to hold client funds in trust. Interest on funds held in attorney trust accounts is directed to the Interest on Lawyers’ Trust Accounts (IOLTA) Program. Individually, these small amounts of interest may seem insignificant. Collectively, they create a powerful funding source for civil legal aid. Across the country, IOLTA programs generate millions of dollars each year to support access to justice for people with low incomes.
How IOLTA Works in Vermont
IOLTA funds are administered by the Vermont Bar Foundation, which distributes grants to nonprofit organizations providing legal assistance to Vermonters who could not otherwise afford representation.
These funds support a wide range of legal services, including housing stability, protection from domestic violence, benefits access, immigration relief, and assistance for vulnerable families and individuals.
Why Your Choice of Bank Matters
Not all financial institutions offer the same interest rates on IOLTA accounts.
Especially during periods of lower interest rates, the rate paid on your IOLTA account directly affects how much funding is available for civil legal aid. Choosing a bank that offers competitive IOLTA rates means more resources for legal services—and stronger access to justice in Vermont communities.
For this reason, the Vermont Bar Foundation encourages attorneys to bank with IOLTA Leadership Institutions—financial institutions that demonstrate leadership by offering rates that meaningfully support the IOLTA program and the legal aid organizations it funds.
