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HB0893

Rules for Interest on Lawyer Trust Accounts

Last scannedAug 24, 2026, 10:35 AM

In one sentence

This law allows banks to hold special trust accounts for lawyers if they pay interest calculated by a specific formula and send that money to an entity chosen by the Supreme Court.

What it does

  • Creates a new state statute, Section 655.98, regarding interest on lawyer or law firm trust accounts.
  • Allows financial institutions to hold funds in these special trust accounts if they send the earned interest to an entity chosen by the Supreme Court.
  • Requires that any interest or dividends collected must be used for free legal services for low-income people or other purposes approved by the Supreme Court.
  • Sets a specific formula requiring banks to pay interest at the Wall Street Journal prime rate minus 300 basis points, with limits of no less than 0.25 percent and no more than 1.5 percent.

Who it affects

  • Financial institutions holding trust accounts for lawyers or law firms
  • Lawyers and law firms with funds in these specified trust accounts
  • The entity established by the Supreme Court that receives the interest payments

Limits and unknowns

  • The law does not list the specific names of financial institutions that must follow these rules.
  • Other purposes for using the funds are only defined if the Supreme Court creates new rules.

Plain language

Terms to know

Trust account
A bank account where lawyers hold money belonging to their clients.
Basis points
A unit of measure used in finance; 100 basis points equal one percent.

Official record

Sources

Source attached

Official summary

Trust Fund Interest for Purposes Approved by Supreme Court

Official activity

Bill history

  1. Vetoed by Governor