Background
In the Matter of Olchowski, 485 Mass. 807 (2020), the Supreme Judicial Court held that funds in IOLTA accounts that cannot be disbursed because their rightful owners cannot be identified or reached should be remitted to the IOLTA Committee rather than escheat to the Commonwealth as abandoned property. The SJC’s Standing Advisory Committee on the Rules of Professional Conduct is currently developing amendments to Mass. R. Prof. C. 1.15 that incorporate the Olchowski ruling.
To request an application form, contact Donna Waite at This email address is being protected from spambots. You need JavaScript enabled to view it. or by telephone at 617-728-8782. More information is available at:
Bar Counsel Application to Transfer IOLTA Funds to the IOLTA Committee
Earlier this month, the Office of Bar Counsel announced it is now processing applications by lawyers who are holding funds in an IOLTA account that cannot be disbursed. The process will allow lawyers, in appropriate circumstances, to transmit undistributable IOLTA funds to the IOLTA Committee. Applicants are expected to make diligent efforts to identify and locate the owners of the funds before applying to transfer the funds to the IOLTA Committee. If such efforts have been made and Bar Counsel approves the application, Bar Counsel will file a motion with the Supreme Judicial Court requesting an Order to allow the applicant lawyer to transmit the funds to the IOLTA Committee.
How Does the IOLTA Committee Use Undistributable IOLTA Funds?
The mission of the IOLTA Committee is to increase access to justice for all residents of the Commonwealth by funding programs that provide civil legal services to low- and moderate-income residents and by supporting initiatives that improve the administration of justice. Specifically, IOLTA funds are received by the IOLTA Committee and then distributed among three charitable entities: The Boston Bar Foundation, The Massachusetts Bar Foundation, and The Massachusetts Legal Assistance Corporation. These three entities use the IOLTA funds to make grants to local civil legal services programs that provide information and representation to clients in family, housing, consumer, employment, education, disability, and similar legal matters. IOLTA funds are also used to support projects to improve the administration of justice, such as alternative dispute resolution projects, lawyer- for-day programs at courthouses, and legal clinics. More information about how IOLTA funds are used in the public interest is available in the IOLTA Committee’s annual report.