What Are Lawyer Trust Account Violations in Florida?
When you ask a lawyer to help you with estate planning in St. Petersburg, they take on a serious responsibility. Unfortunately, some lawyers commit certain violations when tasked with this responsibility, and a 2024 report published by the Florida Bar states that “trust accounting issues” are a common source of complaints against lawyers in the Sunshine State. What can you do if you’re dealing with these issues?
IOTA Violations Are Common
In the context of Florida’s legal world, “IOTA” stands for “Interest on Trust Accounts.” Florida has set up a program that requires lawyers to keep certain funds in a special IOTA account. This money is then pooled with other IOTA accounts across the state’s various law firms, and the interest on that money is used to fund legal aid for low-income individuals. The program is many decades old, and it is one of the “success stories” regularly celebrated by the Florida Bar.
During the estate planning process, your lawyer may be required to keep some of your funds in an IOTA account. When you give them a retainer, this fund may need to sit in an IOTA account until your initial estate plan is complete. When you fund your trust, the money may also pass through your lawyer’s IOTA account.
When your lawyer liquidates your assets after you pass away, these funds may also pass through the IOTA account. However, this all depends on how complex and valuable the assets are, and how long they will have to sit in an account before probate concludes. If the money would generate high levels of interest, that interest should go to the beneficiaries instead. If the assets are relatively low and would remain in an account for a short period of time, an IOTA account may make more sense. This is where many of the accounting errors occur during Florida probate.
Other Lawyer Trust Account Violations
Lawyers may commit all kinds of other trust account violations when handling estates. Simply failing to transfer a large sum into a high-interest account could constitute a serious violation, especially if the family would have otherwise earned considerable sums on interest. Perhaps an even more serious violation for a lawyer is keeping the interest generated on an asset without informing the family. Sometimes, lawyers simply lose track of key physical assets, such as original deeds, physical jewelry, precious metals, or treasuries.
Can an Estate Planning Lawyer in St. Petersburg Help Me?
If you need to make a complaint against your lawyer for trust accounting issues, the last thing you might want to do is hire a different lawyer. However, it is important to remember that not all St. Petersburg estate planning lawyers are the same. A consultation with Drude Tomori Law can provide ideas on how to address your issues, strengthen your estate plan, and pursue positive outcomes. We serve clients in St. Petersburg, Lakewood Ranch, Bradenton, and Sarasota.
Source:
floridabar.org/the-florida-bar-news/2024-florida-bar-discipline-trends-communication-trust-accounting-and-justice-interference-top-complaints/