State Bar of Michigan
home member area contact us


archive



 print this page


for members
SBM general information

member directory

admissions, ethics, and
   regulation


diversity & inclusion

justice initiatives

member services

practice management
   resource center


public policy resource
   center


publications and
   advertising


research and links

sections & committees


ethics for members
ethics developments
ethics opinions
TAON (trust accounts)


from the courts
opinion searching
virtual court


for the public
public resources
media resources


giving opportunities
a lawyer helps
access to justice
   campaign

Lawyers with Trust Accounts Will Be Impacted When New Overdraft Rule Takes Effect Sept. 15

8/23/10

Beginning September 15, 2010, Michigan lawyers will be required to maintain their client or third-person trust accounts at financial institutions that have been approved by the State Bar of Michigan. Financial institutions must submit a signed agreement to the State Bar for approval to maintain lawyer trust accounts.

This new requirement is the result of the Michigan Supreme Court's adoption of Rule 1.15A of the Michigan Rules of Professional Conduct. Also known as the Trust Account Overdraft Notification (TAON) rule, the purpose is to provide an early warning system to lawyers and to the Attorney Grievance Commission when activity in a lawyer trust account results in an overdraft.

State Bar President Charles Toy emphasized that comprehensive and accurate recordkeeping by lawyers is central to their role as caretakers. "It is the duty of Michigan lawyers to safeguard client property and to be vigilant in ensuring ethical financial management of their trust accounts."

Lawyers must confirm that their financial institutions are on the list of approved financial institutions posted on the bar's website at www.michbar.org/opinions/TAON.cfm.

Many lawyers maintain both Interest on Lawyer Trust Accounts (IOLTA) and non-IOLTA trust accounts. They must provide written notice to their banks for each non-IOLTA trust account. Those who have existing IOLTA accounts in TAON-approved banks do not need to take further action.

Information about TAON has been communicated to financial institutions doing business in Michigan as a result of a cooperative effort between the State Bar, the Michigan State Bar Foundation, the Michigan Bankers Association, and the Attorney Grievance Commission. For more information please visit www.michbar.org/opinions/TAON.cfm or call Danon Goodrum-Garland at (517) 346-6333.

###

     

 

follow us
Follow Us on Facebook Follow Us on LinkedIn Follow Us on Twitter Follow the SBM Blog

 

©Copyright 2014

website links
Contact Us
Site Map
Website Privacy Statement PDF
Staff Links

SBM on the Mapcontact information
State Bar of Michigan
306 Townsend St
Lansing, MI 48933-2012
Phone: (517) 346-6300
Toll Free: (800) 968-1442
Fax: (517) 482-6248