The Illinois Rules of Professional Conduct place the responsibility for properly handling IOLTA accounts on the lawyer. Financial institutions have several responsibilities relating to IOLTA accounts, such as remitting monthly earnings and reporting any overdrafts to the Attorney Registration & Disciplinary Commission, but we do not believe that financial institutions are responsible for ensuring that IOLTA funds are used properly.

For resources related to our guidance, please see:

• Supreme Court of Illinois Rules of Professional Conduct, Rule 1.15 Safekeeping Property (“A lawyer shall hold property of clients or third persons that is in a lawyer’s possession in connection with a representation separate from the lawyer’s own property . . . .”)

• Supreme Court of Illinois Rules of Professional Conduct, Rule 1.15 Safekeeping Property Comment 1 (“A lawyer should hold property of others with the care required of a professional fiduciary.”) 

• ARDC Client Trust Account Handbook, p. 1 (“Holding property in trust is a non-delegable, personal fiduciary responsibility as long as that property remains in the lawyer’s possession. This responsibility cannot be transferred and is not excused by ignorance, inattention, incompetence or dishonesty of the lawyer or by the lawyer’s associates or non-lawyer employees. Although a lawyer may employ others, through adequate training and supervision, to assist the lawyer in fulfilling his or her duties under Rule 1.15, the lawyer is solely responsible for ensuring that the duties imposed by Rule 1.15 are being met.”)

• IOLTA Basics for Financial Institutions (This webpage summarizes a financial institution’s responsibilities regarding IOLTA accounts.)