Unidentified Funds in the IOLTA Account: New Rule 1.15(i) (amended April 7, 2015, eff. July 1, 2015)

 

Starting on July 1, 2015, a lawyer who discovers unidentified funds in the IOLTA account (i.e., funds that cannot be documented as belonging to an identifiable client or third party, or to the lawyer or law firm) must follow the mechanism set forth in new Rule 1.15(i).  Under paragraph (i), a lawyer can remove these funds from an IOLTA account when, in the lawyer’s reasonable judgment, further efforts to account for them after a period of 12 months are not likely to be successful , and remit the funds to the Lawyers Trust Fund (LFT). Amended Rule 1.15(i)

Unidentified funds can be remitted to LTF by (1) submitting a completed Unidentified Funds Remittance Report (PDF) and (2) sending a check for the amount of the funds payable to the Lawyers Trust Fund of Illinois. Use of the reporting form is required in all cases. LTF cannot accept remittances made via ACH or wire transfer.  Further information can be found on the LTF website at www.ltf.org.