Advance fee; expense payments

Client Trust Account Rules

Rule: 45.7

Jurisdiction: IA

Bluebook Citation: Iowa Ct. R. 45.7

45.7(1) Definition of advance fee payments. “Advance fee payments” are payments for contemplated services that are made to the lawyer prior to the lawyer’s having earned the fee. 45.7(2) Definition of advance expense payments. Advance expense payments are payments for contemplated expenses in connection with the lawyer’s services that are made to the lawyer prior to the incurrence of the expense. 45.7(3) Deposit and withdrawal. A lawyer must deposit advance fee and expense payments from a client into the trust account and may withdraw such payments only as the fee is earned or the expense is incurred. 45.7(4) Notification upon withdrawal of fee or expense. A lawyer accepting advance fee or expense payments must notify the client in writing of the time, amount, and purpose of any withdrawal of the fee or expense, together with a complete accounting. The attorney must transmit such notice no later than the date of the withdrawal. Ch 45, p.4 CLIENT TRUST ACCOUNT RULES October 2025 45.7(5) When refundable. Notwithstanding any contrary agreement between the lawyer and client, advance fee and expense payments are refundable to the client if the fee is not earned or the expense is not incurred. [Court Order April 20, 2005, effective July 1, 2005; December 13, 2017, effective January 1, 2018]

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