The Illinois Attorney Registration & Disciplinary Commission, IARDC, issued an E-Alert on July 29, 2015 to remind attorneys that as of July 1, 2015, Rule 1.15(i) has been modified to require lawyers to account for and return unidentified funds in IOLTA accounts. Unidentified funds under Rule 1.15 are “amounts accumulated in an IOLTA account that cannot be documented as belonging to a client, a third person, or the lawyer or law firm.” If not successful in identifying and returning the funds during a twelve-month period, then lawyers must remit the funds to the Lawyers Trust Fund of Illinois, LTF. The LTF has promulgated a form to include with remitted funds.

This procedure is different than that for unclaimed property, which ATG has educated members about in the past. Unclaimed property is funds that belong to a known person who cannot be located. In those cases, the Uniform Distribution of Unclaimed Property Act’s requirements should be followed. 765 ILCS 1025.

For more information, please review the ISBA’s Professional Conduct Advisory Opinion 15-02, issued in May, 2015, on this point, and ATG’s previous article on this change to Rule 1.15.

Questions? Contact an Underwriter.