Unclaimed IOLTA Funds Revisited

I first wrote about SB 687 in my post of October 16, 2009.  This legislation continues the requirement of reporting unclaimed IOLTA funds to the Oregon Department of State Lands (DSL), but specifies that proceeds should be paid to the Oregon State Bar (OSB).

From it’s inception on January 1, 2010, practitioners found the law confusing.  Many could not reconcile the two actions:  send your paperwork to the DSL, give the unclaimed funds to the bar.  The process was not made easier by the lack of information on the DSL and OSB Web sites.

Thankfully, the OSB posted this over Mother’s Day weekend May 2010:

Abandoned Client Funds Appropriated to the OSB for Legal Services to the Poor

Until this year, once funds in a lawyer’s trust account were deemed abandoned, they were turned over to the Department of State Lands (DSL). But new amendments to the Uniform Disposition of Unclaimed Property Act (ORS 98.302 to 98.436) enacted by the 2009 Legislature have changed how this money is appropriated and disbursed.

Effective January 1, 2010, unclaimed funds held in lawyer trust accounts must be reported to the DSL, but paid over to the Oregon State Bar with a copy of the DSL reports. The reporting forms can be found on the DSL website at www.oregon.gov/DSL/UP/upforms.shtml. Forms 1a and 2a must be completed and sent to the DSL with copies of the reports and the unclaimed funds forwarded to the OSB.

Pursuant to ORS 98.332, funds held by a fiduciary are deemed abandoned if the owner has not accepted payment of the funds, corresponded in writing about the funds or otherwise indicated interest in the funds within two years after the funds are payable or distributable to the owner. Funds deemed abandoned as of June 30 of each year are to be reported to the DSL during the month of October of that same year, although earlier reporting may be allowed upon written request.

The money paid to the bar under the act will be appropriated to the Legal Services program, which funds legal services to the poor statewide. Questions about forwarding abandoned funds can be addressed to Judith Baker at (503) 431-6326 or jbaker@osbar.org.

Copyright 2010 Beverly Michaelis

4 thoughts on “Unclaimed IOLTA Funds Revisited

  1. Pingback: If It’s October, It’s Time to Report Unclaimed Funds « Oregon Law Practice Management

  2. Pingback: The Clock is Ticking! October is the Time to Report Unclaimed Funds « Oregon Law Practice Management

  3. Pingback: October is the Time to Report Abandoned Funds | Oregon Law Practice Management

  4. Pingback: The Clock is Ticking! October is the Time to Report Unclaimed Funds | Oregon Law Practice Management

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