Legal Foundation of Washington

Important Update for Washington Attorneys, Limited Practice Officers and Financial Institutions:

Changes in FDIC Insurance Coverage for IOLTA Accounts

May 20, 2009
Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor. (This supersedes the October 3, 2008 changes.)

This means that as of January 1, 2010, funds held in IOLTA accounts, as well as those held in non-interest bearing transaction accounts, will be treated the same as the  funds held in all other FDIC insured accounts: each depositor's total funds held in the financial institution will be insured up to a total of $250,000.

Below is a link to the FDIC webpage containing this information: 

http://www.fdic.gov/deposit/deposits/changes.html

October 14, 2008
FDIC announced its temporary Transaction Account Guarantee Program, which provides full coverage for non-interest bearing transaction deposit accounts at FDIC-insured institutions that agree to participate in the program. The transaction account guarantee applies to all personal and business checking deposit accounts that do not earn interest at participating institutions. This unlimited insurance coverage is temporary and will remain in effect for participating institutions until December 31, 2009.

Equal justice is a fundamental principle of democracy. Our laws guarantee basic rights and protections for all of us – not just those who can afford a lawyer.

Many among us are just one bad car accident, consumer scam or job loss away from facing an urgent civil legal problem leaving us with nowhere to turn. Every day serious legal problems are suffered by our neighbors, our children’s classmates, our parents or their friends and others in our community with whom we interact daily.

The Interest on Lawyer and LPO Trust Accounts program (IOLTA) was created to complement state and federal funds to enable low-income people in Washington state to access the civil justice system.

Alliance for Equal Justice members, who each year provide and coordinate thousands of hours of legal assistance, are forced to turn away 90% of low-income people with urgent civil legal problems because programs only have resources to help a fraction of those in need.

With your participation in IOLTA, the Campaign for Equal Justice and other efforts to increase support for legal aid, we can ensure that thousands more low-income and vulnerable individuals and families in crisis can return to safe, productive lives through the help of civil legal aid.

As you visit our website, consider helping to make the vision of access to justice in Washington state a reality for all. Donate and Get Involved because justice for all is everyone’s business.

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