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#1014703 - 08/07/08 03:30 PM Dormant account review
tpowers4 Offline
100 Club
Joined: Sep 2006
Posts: 157
St. Louis
It's getting to be that escheatment time of year again. I just got my letter from the Treasurer's Office yesterday.

I did a quick scan of accounts that qualify and came across some IOLTA accounts that have been dormant for the requisite 5 years now. I don't recall coming up against these previously, so I thought I'd ask if any one else has.

Do we escheat IOLTA accounts once we've completed the due diligence on them or are they handled differently?
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#1020050 - 08/14/08 03:20 PM Re: Dormant account review tpowers4
Michelle B. Offline
New Poster
Joined: Dec 2004
Posts: 12
Illinois
I wouldn't think the escheatment requirements would be any different, however, your due diligence might be a little trickier. My understanding of an IOLTA account is that the "principal" funds belong to the CLIENTS, not the lawyer and the Lawyer's Trust Fund is only entitled to the interest (which your institution should have remitted monthly).

Since you probably do not have the detail as to who the clients are, I would guess that you would have to send your due diligence letter to the lawyer. Perhaps you should also copy the Lawyer's Trust Fund?? Not sure. Maybe http://www.treasurer.il.gov/programs/cash-dash/holders-of-property.aspx or http://www.ltf.org would help.

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#1022441 - 08/18/08 09:20 PM Re: Dormant account review Michelle B.
tpowers4 Offline
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Joined: Sep 2006
Posts: 157
St. Louis
Thanks but a reading of the law doesn't provide any detail for this situation.
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#1022521 - 08/19/08 12:05 AM Re: Dormant account review tpowers4
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,611
Galveston, TX
It would appear it is the lawyer's responsibility to remit unclaimed funds to the State.

http://www.iardc.org/clienttrusthandbook_toc.html

However, in this case, it would appear that the lawyer has disappeared.

I would follow Michelle's advice and call the LTF:

Lawyers Trust Fund, Terri L. Smith, Director of Banking/MIS at 800.624.8962 or 312.938.3001.
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#1022729 - 08/19/08 02:13 PM Re: Dormant account review rlcarey
tpowers4 Offline
100 Club
Joined: Sep 2006
Posts: 157
St. Louis
Left a message with them yesterday. Thanks Randy and Michelle. I let you know what they say.
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#1024267 - 08/20/08 06:32 PM Re: Dormant account review tpowers4
tpowers4 Offline
100 Club
Joined: Sep 2006
Posts: 157
St. Louis
FYI ... Per Terri Smith at LTF, these are handled just like any other dormant accounts and escheated to the state in the name of the attorney (after due diligence, of course) when the time is right.
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