What ABA Model Rule 1.15 Requires — and What Most Law Firms Get Wrong
Sam's List Editorial | 2026-06-06
What ABA Model Rule 1.15 Requires — and What Most Law Firms Get Wrong Attorney trust account violations are the single most common reason lawyers face disciplinary proceedings. The rule is not ambiguous. The accounting is not technically complex. Yet the violations keep happening — almost always at small firms, almost always by attorneys who didn't realize they were doing anything wrong. Featured firm Legal Ease Bookkeeping Brandy Derrick runs Legal Ease Bookkeeping — a Sam's List bookkeeper focused on law firms and property managers. Trust accounting, IOLTA compliance, three-way reconciliations, and owner statements that hold up under a bar or state audit. View profile on Sam's List → “They have made my life a lot easier. For attorneys, managing multiple accounts and especially an IOLTA trust account can be a lot of work. Working with Brandy and her team, it is easy to keep everything straight — every dollar that comes through my accounts is organized and accounted for every week.” — Andrew Deegan · ★★★★★ · Read on Sam's List ABA Model Rule 1.15 sets the baseline for how attorneys must handle client funds and property. Most states have adopted it with minor variations. The core requirements are clear: keep client funds separate, maintain accurate records, and be able to account for every dollar at any moment. The problem isn't that attorneys don't know the rule exists. It's that they don't fully understand what compliance actually requires at the bookkeeping level — and they're using accounting practices that look compliant but aren't. What Rule 1.15 Requires at Its Core The rule states that a lawyer must hold client property separately from the lawyer's own property. Client funds must be kept in a separate, identifiable account at a financial institution — typically an IOLTA (Interest on Lawyers' Trust Accounts) account. Funds belonging to the lawyer must not be in that account. This sounds simple. It becomes complicated in practice because of what "separate" really means and because trust accounts see a high volume of transactions — client retainers received, fee draws taken, settlement proceeds deposited, client disbursements made — all of which must be tracked at the individual client level. The rule also requires that records be kept in a manner that accurately identifies all client funds, is available for inspection, and is maintained in a reasonably organized format. The specific recordkeeping mechanics are largely determined by state implementation — most states have more detailed...
