Personal Injury Trust Guide
IOLTA Trust Accounting Software for Personal Injury Firms
A PI settlement can involve the client, firm, medical providers, and other parties with interests in the proceeds. Software can support the records, but attorneys and accounting professionals must apply their jurisdiction's rules and review every disbursement.
Updated October 8, 2026 · AttorneyCore Editorial Team
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A practical buyer guide
For PI firms evaluating trust records and settlement review controls with a sample matter.
Trust duties to check locally
ABA Model Rule 1.15 addresses separation of client and third-party property, complete records, notification, delivery, and accounting. It is a model rule; the adopted rules of your state control. Ask a responsible attorney or accounting professional to confirm the firm's procedures, retention period, and treatment of disputed funds.
Why PI settlement disbursements need review
A typical matter may require the firm to record settlement receipt, confirm funds have cleared, resolve lien or reimbursement claims, calculate costs and fees under the engagement agreement, obtain approvals, disburse authorized amounts, and provide the client an accounting. The order and timing depend on the matter and governing rules.
Ask the vendor to show how it retains disputed amounts and the supporting documents while the firm decides who is entitled to the funds. A software checklist is not an automatic payment instruction.
- Track each interested party and the status of its claim.
- Record who reviewed the settlement worksheet and approved a payment.
- Preserve the original transaction and an auditable correction when a mistake is found.
What to test in a vendor demo
Use a fictional PI matter and compare the bank statement, trust account register, and total of individual client ledgers, accounting for outstanding items. Then test a proposed disbursement above the applicable balance and inspect the system's warning or block. Check exports, permissions, and reviewer sign-off.
- Separate client or matter ledgers with source documents.
- Reconciliation worksheet and exception handling.
- Settlement worksheet for liens, costs, fees, and client proceeds.
- Permissions for entry, approval, reconciliation, and release.
Monthly review checklist
Compare the bank statement, register, and individual ledgers using the method required by your jurisdiction. Investigate differences, uncleared items, and negative balances. Review retained or disputed settlement funds, then have an authorized reviewer approve and preserve the reconciliation and supporting records.
Before you decide
Frequently asked questions
What is three-way reconciliation?
It compares the bank balance, trust account register, and sum of individual client ledger balances, with proper treatment of outstanding items under applicable rules.
Does software make a firm IOLTA compliant?
No. Software can support records and surface discrepancies; attorneys remain responsible for proper handling, review, and compliance with rules that apply to the firm.
What if the trust account does not reconcile?
Investigate promptly, preserve original records, document the correction, and involve the responsible attorney or accounting professional. Follow jurisdiction-specific obligations.
A practical next step
See whether AttorneyCore fits the way your firm works.
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