D.C. Joins 41 Other Jurisdictions in Making Participation in IOLTA Accounts Mandatory
Legal Services E-lert
Bibliographic Info:
Author: Amanda Becker
Source: The Washington Post, “D.C. Makes Participation in Lawyers Trust Account Program Mandatory"
Date: July 26, 2010
The Washington Post writes: “Beginning next month, members of the District of Columbia Bar holding client funds in nominal amounts will be required to do so in special interest-bearing accounts aimed at generating money for legal aid organizations. The rule change was approved by the D.C. Court of Appeals and is slated to take effect Aug. 1. It is intended to increase attorney participation in the District's Interest on Lawyers Trust Account program. . . . . The D.C. Bar Foundation, which distributes such funds to civil legal services providers in the District, reports that IOLTA revenue dropped by more than 60 percent last year. Even though the nonprofit dipped into its reserves, it could provide only half the funding it did in 2008. Mandatory participation ‘strengthens the IOLTA program,’ said Bar Foundation Executive Director Katherine L. Garrett.
The rule change brings the District in line with 41 other jurisdictions that mandate participation in IOLTA programs. Delaware will adopt a comprehensive program at the beginning of November.”