A fee deposit or advance payment from a client to an attorney for services to be performed in the future remains the property of the client until it is earned by the attorney. Such an unearned fee deposit generally must be held in the attorney’s trust or escrow account and not deposited into the attorney’s operating account or otherwise accessed until the attorney has done the work and earned the fee.

If the client or the attorney terminates the representation at any time, the attorney generally must return the unearned portion of the fee to the client. The terms of the engagement letter or agreement between the attorney and client may impact the attorney's obligation to return unearned fees, and a potential client should read and understand it.

In Iowa, when a client provides a fee deposit or advance payment to an attorney for services that will be performed in the future, this money is considered to remain the client's property until the attorney has actually earned it by providing the agreed-upon services. Attorneys are required to hold such unearned fees in a trust or escrow account, separate from their operating accounts, and cannot use the funds until they have performed the legal work. If the attorney-client relationship is terminated before the work is completed, whether by the client or the attorney, the attorney is generally obligated to refund any portion of the fee that has not been earned. The specific terms of the engagement letter or agreement between the attorney and the client can affect the attorney's obligation regarding unearned fees. Therefore, it is important for clients to thoroughly read and understand the terms of any agreement before entering into a legal relationship with an attorney.