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IOLTA · client & escrow trust accounting

The immutable ledger for client trust and escrow accounts.

Connect the trust account. Client funds are reconciled to the penny against the trust-accounting rules, any shortfall surfaces the moment it appears, and every movement is anchored so a compliance audit is a verification, not a reconstruction.

IOLTAReconciled
The problem

Why this is hard today.

A lawyer’s or a broker’s trust account is the one place a licensing regime shows zero tolerance. Client and third-party funds must stay separate from operating money, be reconciled every month, and never — even briefly — go negative for any single client. One commingled transfer is a complaint.

For attorneys, the safekeeping-of-property rule (Rule 1.15) and the state’s trust-accounting rules require client funds held in trust, complete records, and prompt accounting; eligible nominal or short-term funds are pooled through the state’s IOLTA program. For real estate brokers, HRS §467-14 makes mishandling client or escrow funds grounds for license discipline. Same principle, two regulators.

The mechanics are what break people. A three-way reconciliation — bank balance, book balance, and the sum of every client’s sub-ledger — has to tie out every month, and long-dormant balances eventually escheat to the State under Hawaii’s unclaimed-property law. Miss the reconciliation and you don’t find out until the audit, when reconstruction is hardest.

What the rules require

The obligations, in plain language.

The obligations below come from professional-conduct rules and licensing statutes. OpenBooks keeps the sub-ledgers, runs the reconciliation, and assembles the audit packet. You and your bank move the money. This is recordkeeping software, not legal or ethics advice.

RequirementAuthorityWhat it means
Segregate client fundsRule 1.15 (safekeeping of property)Client and third-party funds are held in a trust account, separate from the firm’s operating funds.
Participate in IOLTAState IOLTA programEligible nominal or short-term client funds are held in a pooled, interest-bearing trust account; the interest funds legal-services programs.
Reconcile three ways every monthTrust-accounting rulesBank balance, book balance, and the sum of individual client ledgers reconcile monthly, and no client sub-balance goes negative.
Broker escrow handlingHRS §467-14Mishandling of client or escrow funds is grounds for real estate license discipline.
Report unclaimed balancesHRS ch. 523A (Uniform Unclaimed Property Act)Long-dormant client balances are reported and escheated to the State on the statutory cadence.
How OpenBooks handles it

Connect once. Approve. Publish.

Connect the trust account read-only. The agent keeps a sub-ledger per client, runs the monthly three-way reconciliation, and guards against any single client going negative.

Connect the trust account

Read-only connection. Every deposit and disbursement imported as it clears. We never move funds.

Per-client sub-ledgers

Each client’s balance tracked individually; the sum always ties back to the account.

Negative-balance guard

Any single client sub-balance approaching zero flags immediately — before it overdraws.

Monthly three-way reconciliation

Bank, book, and client-ledger totals reconciled and evidenced every month, automatically.

Audit packet

A reconciliation and full movement history assembled for a bar or licensing audit.

Verify page

Every movement anchored in a SHA-256 chain — an auditor verifies the record instead of reconstructing it.

Artifact produced: a monthly three-way reconciliation report plus a tamper-evident, anchored trust-movement history ready for a compliance audit.

Verify, don’t trust

What “verify” looks like here.

Every trust movement is chained with SHA-256 to the one before it. When the bar or a licensing auditor arrives, they verify the head hash against the record instead of reconstructing a year of transfers. It is a clean trust account you can prove.

Pricing

Priced for trust accounts.

Per firm. Attorney IOLTA and broker escrow.

Solo
Solo practitioners & single-broker offices
$149/mo
  • Connect trust account
  • Per-client sub-ledgers
  • Monthly reconciliation
  • Verify page
Get started
Most common
Practice
Small firms & brokerages
$249/mo
  • Everything in Solo
  • Negative-balance guard
  • Audit packet export
  • Unclaimed-balance flagging
Get started
Firm
Multi-attorney firms & multi-office brokerages
$399/mo
  • Everything in Practice
  • Multiple trust accounts
  • Role-based approval
  • Onboarding + migration support
Get started

Prices are introductory and per organization. Not legal or tax advice.

Trust Accounts — questions officers ask.

Does it prevent commingling?+

It tracks client and operating funds separately and flags any transfer that would mix them. You still control the account — we keep and prove the record.

What is a three-way reconciliation?+

Bank balance, book balance, and the sum of every client sub-ledger must tie out each month. We reconcile and evidence all three.

Does it work for both IOLTA and real estate escrow?+

Yes. Attorney client-trust and broker escrow follow the same pattern: segregate, reconcile, and prove.

Will it catch a client going negative?+

Yes. A per-client negative-balance guard flags before an overdraft can happen.

Do you move money?+

No. The connection is read-only. You and your bank move funds; we keep and prove the record.

Is this legal or ethics advice?+

No. It is recordkeeping software. Your firm and bar counsel remain responsible for compliance.

What about unclaimed balances?+

We flag long-dormant client balances for your unclaimed-property reporting.

What happens when we correct a mistake?+

Corrections are appended as new entries referencing the original by hash. Nothing is overwritten.

Bring trust accounts into the open.

Draft-first, officer-approved, cryptographically verifiable. Non-partisan and non-sectarian by construction.

See it verify a real receipt.
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