Frequently Asked Questions About Trust Account Declarations (Form B1)

1. Must I complete this form every year, even if the information hasn't changed from last year ?

Yes. It isn't sufficient to indicate on the form that there has been no change from the previous year. Rule 15.5 of the Rules for Enforcement of Lawyer Conduct requires each active lawyer to complete, execute, and deliver to the Association this declaration by the date specified annually. The information you complete on the form needs to be current and complete, including your trust account information.

2. If I don't send in the form, won't it be obvious I don't have a trust account?

No. If you fail to send in a trust account declaration, we will not assume that you do not maintain a trust account and you may be subject to discipline. 

3. Do I have to answer every question if I'm not engaged in the practice of law?

You must answer every question in Part 1.  Part 2 only applies if you have an IOLTA account.

4. I'm an associate in a large firm and have nothing to do with the trust account.  How can I certify trust account records and client funds are being maintained in compliance with trust account rules?

Every attorney must personally respond to the request to certify that funds are handled correctly. If you work for a firm and have questions about the trust account, talk to the managing partner and/or accounting staff until you feel comfortable signing the certification. You should have an understanding of how a trust account works and how your firm manages its account.

5. Can my firm fill out my declaration and mail it in for me?

Someone in your firm may complete Part II or prepare a separate piece of paper with the firm's trust account information on it to attach to your declaration. However, you must personally certify whether you are in compliance and sign and date the form under Part I. If you do not, the form will be returned to you as incomplete.

6. I work for a large law firm.  We would like to note on Part 2 the name of the managing partner so the WSBA can find the necessary information on the partner's declaration. 

You may photocopy the partner's declaration and attach a copy to each of the other declarations to satisfy Part 2.  It is necessary for each declaration to be completed. 

7. Question B on the form relates to handling client funds.  What is meant by client funds?

Client funds are funds in your or your law firm's possession that belong to your clients or third persons.  These funds are received in connection with a representation for which you are required to use your Washington license. Examples of client funds are advance fee deposits, settlement proceeds, escrow funds, and client overpayments. Earned fees you receive are not client funds. If you receive only earned fees from clients, you should check that you do not handle client funds.

8. Are there ever any circumstances when I would indicate that I do not handle client funds, but I do maintain an IOLTA?

Not usually. Some attorneys respond this way because they no longer accept client funds, but still have residual client money that needs to be refunded. If that's the case, you should indicate that you are handling client funds. These client funds should then be refunded so you can close your trust account. If you cannot locate the clients or discover funds in your trust account that you cannot identify as belonging to you or your client, these should be remitted to the Unclaimed Property Division of the Washington State Department of Revenue.

Attorneys often believe they are required to have an IOLTA account to maintain their license, whether they handle client funds or not. If you do not handle client funds, you do not need to open an IOLTA account.

9.  If I practice in multiple states and/or Canadian provinces, whose rules do I follow? 

The WSBA trust account declaration relates only to the practice of law under your Washington license. All states and provinces have different requirements regarding safekeeping of client funds. When you receive client funds, you must analyze if you are holding these funds in connection with a representation where you are using your Washington license. If you are using your Washington license, then you must place these funds in an IOLTA account that meets the requirements of RPC 1.15A.

If you have IOLTA accounts in other states or Canadian provinces, you should not provide information regarding those accounts on your Washington trust account declaration. 

10.  Question C relates to a Washington IOLTA.  Does this mean my IOLTA account must be located in Washington State?

No.  A Washington IOLTA is any IOLTA account where the interest goes to the Legal Foundation of Washington.  These accounts can be located in any state.  But we are only interested in Washington IOLTAs.  Please do not include IOLTAs where the interest goes to other states.

11. Do I also list other account numbers besides my IOLTA account in Part II?

No. Do not list individual client trust accounts or other non-IOLTA accounts.

12. Do I need to update my trust account declaration when I open or close an IOLTA account or change banks during the year?  

 No. Update your information when you file next year's trust account declaration

13. What if I do not have a trust account now because I do not handle client funds, but I had one for part of this year or I expect to have one next year?

The trust account certification questions should be answered according to the facts as they exist on the date the certification is signed. You do not need to report closed IOLTA accounts - only currently open accounts. You do not need to notify the WSBA if you open an IOLTA account midyear. You report only once a year.

14. Where can I get a Trust Account Declaration form?

The trust account declaration form is part of the WSBA Licensing Form mailed to every WSBA member in December. If you did not receive a licensing form, please call (206) 727-8217 or E-mail questions@wsba.org. Only active status members receive a trust account form.

15. Where can I get more information about complying with the trust account rules?

A WSBA booklet titled Managing Client Trust Accounts: Rules, Regulations and Common Sense is available on the web. This is a guide for attorneys in dealing with trust account questions. It is also available in print to WSBA members free of charge. Call the WSBA Service Center at 206-443-WSBA or 1-800-945-WSBA or e-mail questions@wsba.org to receive a copy.

16. Where is the authority requiring the trust account declaration form?

Rule for Enforcement of Lawyer Conduct 15.5(a).

17. What if I have additional questions?

Call the WSBA service center at 800-945-WSBA (9722) or 206-443-WSBA (9722), or email questions@wsba.org.