Legal Question in Personal Injury in Michigan
Interest of funds held by attorney
When a defendant has paid an agreed to amount and the money is held by an attorney until it is disbursed, who gets the interest that that money earns?
2 Answers from Attorneys
Re: Interest of funds held by attorney
From my understanding, the money is generally held in what is knownas an IOLTA account. These accounts are mandated by law. Every attorney who holds funds for disbursement must have such an account. The interest that you describe is paid to the State Bar of Michigan. The attorney does not get the interest. The interest payments are used to fund the state bar. I know it's incredible but that is my understanding. William S. Stern
Re: Interest of funds held by attorney
The money is supposed to be deposited in a IOLTA account, with interest paid the State Bar, unless the interest would be more than $50, in which case the lawyer has to open a seperate account, and pay the interest to the client.
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