Answer: No.

Explanation: A COLTAF account must only hold the funds of clients or third parties, including unearned fees, prepaid expenses, settlement funds, etc. It is professional misconduct to commingle client or third party funds with funds belonging to a lawyer, LLP, or firm.

The only funds belonging to a lawyer, LLP, or firm which may be placed into a COLTAF account are funds reasonably required to meet a minimum balance or to pay fees. Such funds must be clearly identified in the firm’s accounting records. See Colorado Rule of Professional Conduct 1.15B(b)(f) and Colorado Licensed Legal Paraprofessional Rule of Professional Conduct 1.15B(b)(f).

It is professional misconduct for a lawyer or LLP to deposit funds into a COLTAF account which are not reasonably needed to cover fees or to meet a minimum deposit requirement for the purpose of preventing overdrafts. An ethically managed COLTAF account will not overdraft and does not need a prohibited “cushion.”