Answer: No. Any client or third-party funds held in connection with the practice of law in Colorado must be held in a COLTAF account, not your out-of-state IOLTA account.

Explanation: Lawyers and LLPs practicing law in Colorado are subject to the Colorado Supreme Court’s authority in regulating the practice of law and disciplining lawyers and LLPs for mishandling of funds. Therefore, when you handle client or third-party funds in connection with your practice of law in Colorado, you must hold those funds in a COLTAF account. A lawyer or LLP should use good faith judgment in determining if funds are held in connection with the practice of law in Colorado. See Colorado Rule of Professional Conduct 1.15A, comment 2.

This applies to multi-jurisdiction law firms. When your firm opens an office in Colorado or has attorneys practicing law in Colorado, your firm must open a COLTAF account. See our Where to Bank Page for approved banks. Many of our approved banks have branches nationwide, which will facilitate account administration from your firm’s out-of-state headquarters. Although you may use a national bank, we still recommend opening the account at a Colorado branch. This reduces the likelihood that the bank erroneously opens the account as a non-COLTAF account.