Answer: 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.