IOLTA Bill providing Interest back to client

SB 31 would change Montana's IOLTA (Interest on Lawyer Trust Account) program from mandatory to voluntary. Currently, lawyers must deposit client funds into IOLTA accounts where the interest goes to the Montana Justice Foundation, not the client. This bill would require lawyers to get a client’s written consent before using IOLTA, giving clients three options: a non-interest account, an interest-bearing account where they receive the interest, or the IOLTA program. The bill directly affects Montana lawyers and their clients by altering how client funds are handled and who receives the interest earned.