Pursuant to Rule 1.15 of the Colorado Rules of Professional Conduct, any lawyer who receives, maintains, or disburses client funds in Colorado is required to have at least one identifiable interest-bearing trust account, with the interest payable either to the client or to COLTAF.
A COLTAF account is for those client funds that are nominal in amount or are expected to be held for a short period of time, with the intent that such funds not earn interest in excess of the reasonably estimated cost of establishing, maintaining and accounting for trust accounts for the benefit of such clients. If a lawyer or a law firm discovers that client funds have mistakenly been held in a COLTAF account in a sufficient amount or for a sufficiently long time so that interest on the funds exceeds such reasonably estimated costs, the lawyer or law firm should request a refund from COLTAF. Click here for COLTAF’s refund procedure.
Lawyers’ trust accounts, including their COLTAF accounts, must be in a financial institution approved by the Colorado Supreme Court’s Attorney Regulation Counsel.
Click here for a COLTAF Enrollment Form (the form you should give to your bank, authorizing it to establish your COLTAF account).
Lawyers are required to certify their compliance with Rule 1.15 each year on their annual Attorney Registration Statement.