---
title: "Client direction for an IOLTA or separate trust deposit (United States)"
url: "https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/us-iolta-or-separate-trust-deposit-direction"
type: "precedent"
site: "AI Law Framework"
id: "a41-us-iolta-or-separate-trust-deposit-direction"
area_id: "A41"
kind: "letter"
ai_level: "red"
version: 1
task_ids: ["A41-T1-R2", "A41-A20260923-2"]
law_stated_as_at: "2026-10-22"
---

# Client direction for an IOLTA or separate trust deposit (United States)

> Client direction naming the trust account for a deposit, and the limits on a later withdrawal of earned fees or incurred expenses. The lawyer decides whether the funds are nominal or short-term.

Canonical page: https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/us-iolta-or-separate-trust-deposit-direction  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Trust accounting & handling client money](https://ailawframework.com/precedents/trust-accounting-and-handling-client-money.md)
- Jurisdictions: United States
- AI level: Red. You write the text. The tool writes nothing into the document. Where permitted, it may check, clarify or collect data, and anything it checks or collects is verified.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 3 authorities it cites, for United States.

## When to use it

Use when a US lawyer or firm is about to receive client or third-person funds into a trust account and needs a written agreement for the deposit and for any later withdrawal of earned fees or incurred expenses. Do not use it to decide a dispute about who owns the funds.

## Used for these tasks

- [Draft a trust receipt or disbursement instruction from the authority](https://ailawframework.com/obligations/trust-accounting-and-handling-client-money/draft-a-trust-receipt-or-disbursement-instruction-from-the-authority.md)
- [Check a trust-to-office transfer against the bill and the authority](https://ailawframework.com/obligations/trust-accounting-and-handling-client-money/check-a-trust-to-office-transfer-against-the-bill-and-the-authority.md)

## How AI may be used

The lawyer writes the account decision and any amount that may later be withdrawn. A tool may list figures the lawyer has already written so they can be compared. It writes nothing that goes into the signed direction.

**AI may:**

- List, beside the draft, the amount, bank and account name the lawyer has already typed, so the lawyer can compare them
- Flag blank placeholders and a row in the decision table that has not been completed
- Point to the sentences in Model Rule 1.15(c), (d) and (e) that the direction relies on

**AI must not:**

- Must not decide whether funds are nominal or short-term, or choose IOLTA rather than a separate account
- Must not state that a fee has been earned or that an expense has been incurred
- Must not insert an account number, amount or payee from an email or a tool output into the direction
- Must not describe Indiana Rule 1.15 as if it applied in another state

**The lawyer checks:**

- The jurisdiction's own trust-account and IOLTA rule has been read, not only Model Rule 1.15
- One decision row is complete, and it matches that rule's test for nominal or short-term funds
- Any flat fee or retainer is left in trust unless the jurisdiction's rule, as checked, allows withdrawal
- The signed direction is not treated as authority to pay a new account requested by email, phone or message

## Authorities

- [ABA Model Rules of Professional Conduct, Rule 1.15 (Safekeeping Property)](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_15_safekeeping_property/)
- [ABA Model Rules of Professional Conduct, Rule 1.15, Comments 1 to 3](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_15_safekeeping_property/comment_on_rule_1_15/)
- [Indiana Rules of Professional Conduct, Rule 1.15 (Safekeeping Property), page marked effective October 1, 2024](https://rules.incourts.gov/Content/prof-conduct/rule1-15/current.htm)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/us-iolta-or-separate-trust-deposit-direction and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*