Taxation & Estate Planning

Estate Planning and Ethics: Who's The Client?

By Joel A. Schoenmeyer

I was at a seminar today on ethical considerations in estate planning. One of the things I noticed was how often an ethical dilemma starts because the attorney doesn't know (or doesn't keep in mind) the identity of the client. Some examples:

1. Joint representation (husband and wife): In most cases, they are BOTH the client, even if one of them is your primary contact. And that should mean that there are no secrets here -- if John and Jane Adams come to see you for estate planning, and John pulls you away and tells you "secretly draft my Will to leave everything to my mistress," you have a duty to inform Jane (YOUR CLIENT) of John's comment.

2. Multiple-generation representation: Maybe you represent mom and dad, and one or more of their grown kids and their spouses. Just remember that they are ALL your clients, and you can't favor one set of them (usually mom and dad) over the others.

3. The third party: Son or daughter calls you. "I want you to do a Will for mom." Who's your client? NOT son or daughter. It's mom, and you don't do it unless it's what mom wants, and you can assure yourself that mom is competent and isn't being unduly influenced.

4. Same as above, but son or daughter are paying you. Who's your client? It's still mom -- it doesn't matter who's paying you.

Full post as published by Death and Taxes Blog on May 01, 2009 (boomark / email).