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