Martes, Hulyo 3, 2012

IOLTA Arizona - How it Works

IOLTA Arizona was implemented for the main purpose of providing civil legal services to those who can't afford it. The whole procedure, however, is not that simple. This is probably why IOLTA is still being misunderstood by some people. Some are even under the assumption that it is just another way of taking the clients' money. While it may seem this way in the perspective of some people, it is actually not. IOLTA's revenue stream comes from the interests of the clients' funds. It should also be known that large amounts are exempted from IOLTA. IOLTA only affects funds that are not large enough or funds that will only be held for a short time.

The lawyers' customarily receive funds from their clients that are to be held in trust. These funds can come in large or small amounts. Funds of large amounts are placed in interest-bearing accounts that will generate interests which in turn will benefit the client. If the funds are not large enough to generate any interest, they are put together in a single interest-bearing account. Because these funds will not be able to generate any interest on their own, there will be no loss of money from any party. What's great about this trust account is that the interest will go to the people who can't afford to pay for legal services.

If you are wondering where people who can't afford legal services get their money to pay for their lawyers then this is the answer that you are looking for. It should be noted that the organization that handles these interests and where they go to differ from state to state. Most states, like Arizona, let the State Bar handle the funds. This is to ensure that the revenue will go directly to charitable purposes and not someone else's pockets.

Walang komento:

Mag-post ng Komento