Effective July 1, 2025, the Maryland Rules of Professional Responsibility 19-301.15 had been amended to require that all legal fees and expenses paid in advance must be deposited into the Attorney’s IOLTA escrow account to be withdrawn only as fees are earned or expenses incurred. The provision of this rule that allowed a client to consent to a different arrangement has been removed from the rule. Thus, Maryland’s rule is no longer consistent with D.C.’s rule which does allow different arrangements.

Bar Counsel has sent a letter to all Maryland Attorney’s to this effect. A copy of the letter is included with this post.

It is permissible to have milestone payment provisions in your retainer agreement which allow withdrawals from escrow in flat fee cases as work is completed on the case.

Moving forward, all practitioners will have to put retainer fees in escrow and account for those funds in accordance with Rule 19-401, et al.

Should you be facing a Complaint or simply wish to consult regarding how to fully comply with this new rule, please feel free to contact the firm and schedule a consultation.