Does settlement money that is placed in the attorney escrow account grows interest. If so, who gets the accumulated interest?

Asked over 1 year ago - Upper Marlboro, MD

My settlement money was placed in my attorney escrow account in September 2012. On January 31, 2013, a portion of the settlement money was released to me but there is still some money remaining.

Attorney answers (7)

  1. Thomas C Valkenet

    Pro

    Contributor Level 17

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    Answered . Maryland Legal Services Corporation. Read all about it at the link, below.

  2. William Emil Cassara

    Pro

    Contributor Level 18

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    Answered . When I practiced in MD it went to a firm called IOLTA (Interest on Lawyer's Trust Accounts) and was used for indigent legal services. Check with your attorney.

  3. Jeffrey Mark Adams

    Contributor Level 20

    4

    Lawyers agree

    Answered . Escrow accounts usually do not accrue interest. If they do, like New York, which is nominal, it belongs to the State. I'm sure your lawyer can better explain this to you.

    Personal injury cases only; I'm good at it; you be the Judge! All information provided is for informational and... more
  4. Matthew C Simon

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    Contributor Level 18

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    Answered . Its a small amount of interest and generally you share it according to your retainer agreement. Speak to your lawyer about the details and re-reread your retainer agreement.

    The above is general information only and is not legal advice. The information provided does not form an attorney-... more
  5. Michael R Crosner

    Contributor Level 20

    2

    Lawyers agree

    Answered . Not sure about MD, but in California settlement proceeds are usually placed in an attorney's trust account until disbursed - In California the interest goes to the California State Bar. Check with your MD attorney who settled your case.

    This is not intended to be legal advise or as legal representation. I am a California personal injury attorney .... more
  6. Lawrence Roger Holzman

    Contributor Level 12

    Answered . In Maryland, all attorney escrow accounts are regulated by the state. All interest from these IOLTA (interest on lawyer trust accounts) goes to the Maryland Client Security Trust Fund.

  7. Christian K. Lassen II

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . MD Legal Services Corp

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