On July 1, 2011, the Illinois Supreme Court adopted amendments to Rule 1.15 of the Illinois Rules of Professional Conduct, which affects the handling of client trust funds. Effective Sept. 1, the three key changes are:
-
Types of Client Trust Accounts: paragraphs ¶(a), (f) & (g) - All client trust accounts must be interest or dividend bearing, at an eligible financial institution, and must be either an IOLTA client trust account, with the interest going to the Lawyers Trust Fund of Illinois (LTF) or a non-IOLTA client trust account established to hold the funds of an individual client or matter, with the client or third person receiving the interest.
-
Recordkeeping Requirements: paragraphs ¶(a)(1)-(8) - Specifies the required accounting journals and records of trust funds that must be established and maintained for seven years after the representation has ended.
-
Overdraft Notification: paragraph ¶(h) - Requires banks to automatically notify the ARDC of an overdraft of the client trust account. The ARDC is compiling, and will post to its website, a list of eligible banks.
|