Improper identification of trust accounts subject to tax seizure and garnishment

The Office of Lawyer Regulation (OLR) recently discovered that a significant number of lawyers and law firms have not identified pooled, interest-bearing Interest on Lawyer Trust Accounts (IOLTAs) with the language required by SCR 20:1.15(a).

IOLTA account names must include the name of the lawyer or the firm, and the words "client's account," "trust account," or words of similar import. The use of an acronym, such as IOLTA or WisTAF, does not comply with the rule.

The purpose of the naming requirements is to avoid any confusion regarding the nature of the account and the ownership of the funds. When trust accounts are identified solely with the name of the attorney or the law office with no indication that they are trust accounts, they appear to be business or operating accounts, which are subject to tax seizure and garnishment.

What if your trust account is not properly titled? Contact your financial institution immediately about retitling the account. The account must be identified as a trust or client account on the signature card or similar record identifying the account, monthly bank statements, checks, and deposit slips. Then, refile with OLR a new Exhibit A and a voided check bearing the new account name. Be sure to provide a copy of the new Exhibit A to your financial institution. To receive an Exhibit A form, call (877) 315-6941 or visit the OLR's webpage on Trust Account Overdraft Program.

Caution. In addition to the naming requirements, financial institutions may have other requirements relating to taxpayer identification. For example, a bank may require the acronym WisTAF or IOLTA in the account name in order to establish that the interest on the account is not paid to the attorney or law firm, but rather, to the Wisconsin Trust Account Foundation. The financial institution's naming requirements should be viewed as supplementary to, and not a substitute for the Wisconsin Supreme Court's requirements.

The titles of non-IOLTA, fiduciary accounts (accounts set up for individual clients or client matters) may vary; however, like IOLTA accounts, the fiduciary account titles must clearly identify the funds as client or third-party property, not the property of the lawyer or law firm.

For more trust account tips visit the OLR Web site and select the Trust Account Overdraft Program.

WisTAF distributes $1.7 million in grants

The Wisconsin Trust Account Foundation (WisTAF) will distribute $1,712,000 in 2001 to 15 agencies that provide direct civil legal services to Wisconsin's low-income citizens.

The Wisconsin Supreme Court created WisTAF in 1986 to provide funds for access to justice for all people. WisTAF receives its income from a unique partnership of Wisconsin attorneys and bankers. Banks provide an average interest rate of about 2 percent for attorney trust accounts to support poverty law services. The interest generated by the accounts goes to WisTAF, which distributes it in annual grants.

"The Foundation has granted more than $17 million since 1986 and is celebrating its 15th year of legal services grant making," said Executive Director Tom Heine. "WisTAF is proud of its tradition of working closely with the State Bar and its members to bring the justice system to low-income clients."

2001 recipients include: ABC for Health, $85,000; AIDS Network, $20,000; American Civil Liberties Union, $30,000; Center Against Sexual & Domestic Abuse, $64,000; Centro Legal Por Derechos, $15,000; Legal Action of Wisconsin, $634,440; Legal Action of Wisconsin, Racine Bar, $30,000; Legal Aid Society, Door County Bar, $7,000, Legal Aid Society, Milwaukee, $100,000; Legal Services NE Wisconsin, $186,600; Portage County Legal Aid, $7,000; Western Wisconsin Legal Services, $124,400; Wisconsin Coalition for Advocacy, $90,000; Wisconsin Judicare, $298,560; and the Wisconsin Law Foundation, $20,000.

Western District Bar holds annual luncheon

University of Southern California law professor Erwin Chemerinsky will address the Western District Bar Association at its annual luncheon on April 27. He will discuss recent U.S. Supreme Court cases and the direction in which he believes the court is moving.

CLE program presentations immediately follow the luncheon. Chemerinsky will discuss current constitutional law issues; U.W. Law School Prof. Frank Tuerkheimer will speak about the Federal Rules of Privilege; and Magistrate Judge Stephen Crocker will speak about the recent changes to the Federal Rules of Evidence and Practice. A panel discussion will follow the presentations.

The luncheon is $15. Tuition is free for WDBA members; $50 for non-WDBA members. The program has been submitted for 3 CLE credits. For more information or to register, contact Bob or Le Jordan at (608) 277-9008; (800) 281-3643, or cow@mailbag.com.

State Public Defender's Office Honored with 2000 Wisconsin Forward Award

The Wisconsin State Public Defender's Office recently received the 2000 Wisconsin Forward Award. Former Gov. Tommy Thompson created the program in 1997 to recognize organization excellence in government, business, service, healthcare, and education. The program's mission is to promote and recognize the adoption of quality and high-performance management principles and practices in order to help Wisconsin organizations achieve world-class status in products and services; meet international competition; and enhance learning, continuous improvement, and performance.

"Only 10 Wisconsin organizations received an award in 2000, and in the award's three-year history, the SPD represents only the second government agency - and the first law firm - to be honored with this distinction," commented State Public Defender Nicholas Chiarkas. "The Wisconsin Forward Award criteria challenge all applicants to ask and answer tough questions about themselves and their manner of delivering services. The SPD saw this process as an opportunity to provide even greater value to the criminal justice system as well as to measure itself against other organizations."

In granting this award, the Wisconsin Forward Award examiners confirmed that the SPD provides a high level of service. The agency was recognized for its commitment in providing accessibility to clients, accessibility to the general public, programs that prevent children from offending, innovation in the use of its computer technology, and overall contributions to the criminal justice system. The report specifically praised the SPD's sponsorship of community justice forums, the Wisconsin Cares About Kids Award, and the international Justice without Borders program.

Dane County Court Grant to Improve Jury Diversity

Dane County Clerk of Circuit Court Judy Coleman received a $12,000 grant from the State Justice Institute to hire a consultant to develop a strategic plan to increase the delivery of jury summonses to people of color in Dane County.

To summon its jurors, Dane County uses Department of Transportation lists of licensed drivers and nondrivers holding state identification cards. Currently, 50 percent of the summonses sent to minorities are undeliverable. In comparison, only 17 percent of summonses to nonminorities are undeliverable. Of all the jurors summoned to serve, 3 percent are minorities. However, minorities comprise nearly 9 percent of the county's population and 37 percent of Dane County's jail population.

The Dane County Jury Implementation Committee, a multidisciplinary group, will work closely with the consultant to find ways to increase the delivery rate of summonses to the minority community. This committee is an outgrowth of a 1992 Jury Study that listed increasing minority representation as a top priority.

Judge Moria Krueger, chair of the Implementation Committee, hopes that by working with the minority community, the consultant can explore approaches to correct this problem with delivery in ways that are acceptable to the community. "We must learn why we are encountering this problem, and we must listen carefully to creative solutions. We hope to develop a comprehensive plan to assure delivery of our calls to jury duty uniformly throughout our county."

According to Krueger, this plan may include changes in local procedures or in state law. Essential elements will be a blueprint for community outreach and a public education program.

State Bar seeks ABA delegate candidates

The State Bar of Wisconsin seeks candidates interested in filling two positions as State Bar representatives to the American Bar Association (ABA) House of Delegates. ABA delegates establish association policy and define the ABA's position on professional and public issues; elect the ABA's officers and board of governors; and amend the ABA's bylaws and constitution, among other responsibilities.

During their two-year terms, State Bar delegates attend House meetings, participate fully in its proceedings, and discharge the House's responsibilities. They also assist constituent entities in presenting issues of concern for debate and action by the House.

The State Bar will elect two members to the ABA House of Delegates at the May 4 - 5 Board of Governors meeting.

Interested members should review Article III, Section 11, of the State Bar bylaws for qualifications for election and election procedure. The bylaws can be found on page 618 of the 2001 Wisconsin Lawyer Directory or online at www.wisbar.org/bar/bylaws/. Nomination petitions must be filed with State Bar Executive Director George Brown by April 15.

Wisconsin Lawyer