[WSBARP] Escrow, LPO’s and IOLTA

[Randy Cornwall]

Listmates - I have a question about escrow companies and IOLTA accounts. 

My understanding was that any escrow company that employed LPO‘s had to establish an IOLTA trust account and that any interest earned be paid to the Legal Foundation of Washington. I just spoke with a local bank that handles the banking for numerous escrow companies, and they told me that only one of them has an IOLTA account. All the rest have “regular” trust accounts that allow interest credits earned to be used to pay for bank fees - and even earn income! 

Does anybody have any experience with this or know of a bright line rule for when IOLTA accounts are required or not?

Thanks in advance for your advice. 

Randy Cornwall
Demco Law Firm

Sent from my mobile device. Please forgive typos and incorrect "auto corrects".