Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
Is it the bank’s or the lawyer’s responsibility to make sure that an IOLTA account is used properly? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Is it the bank’s or the lawyer’s responsibility to make sure that an IOLTA account is used properly?

—

by

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.”)