Trying to Do the Right Thing – Ethics and Estate Planning

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by: Kelly Cooper

Many readers of this blog are familiar with (or even attended) the CBA’s Trust and Estate Section’s Estate Planning Retreat two weeks ago in Snowmass Village.  As always, the Retreat was a great time to reconnect or catch up with our colleagues who work in the estate planning and administration areas and attorneys who do estate planning, administration and litigation.  More importantly, each year the Retreat presents an opportunity for attorneys from all over the state to discuss issues and exchange ideas with each other in small groups.  This year, Jean Stewart and I hosted one of those small discussion groups.  Our discussion group focused on ethics and the conflict and confidentiality issues that arise during the course of representing a family – from the initial representation of a couple for estate planning, to representing the family business, pre-nuptial agreements for the couple’s children, divorces, the differing treatment of children (Greedy, Needy and Speedy), and eventually, the disability or death of a client.

For those who were not able to attend the Retreat (or just not able to attend our session), here is a summary of the issues that received the most attention during our four sessions:

  •  Do you represent couples jointly for estate planning?  If so, assume one of the
    client shares information with you and does not want the other half of the couple to know that information. Do you have an affirmative obligation to share that information with the other joint client? Do you only have to share the information if it affects the estate plan? Do you only have to share the information if it requires you to end the engagement?  Do you only have to share it if the other client asks for advice that requires you to use the information that was shared?  What conversations should you have with the couple before they become clients regarding these issues?  What type of written correspondence do you send discussing these types of issues?
  • Should you represent the family business?  This discussion did divide some of our groups and it gave rise to an important practical question.  Even if the ethical rules permit the representation, is it worth the effort required to work through the potential conflicts and the trouble that may arise in the future? 
  • Can you (or should you) continue to represent a couple during a divorce or individually after the divorce is final?  Should the terms of the couple’s separation agreement factor into your decision?
  • Should you represent one of the couple’s children, at the request of the couple, to draft a prenuptial agreement?  What if the couple is paying for your services?  What if the child’s view of the prenuptial agreement is different than the couple’s?
  • Can you (or should you) represent the couple in the sale of the family business to one of the children? 

I always enjoy the Retreat’s discussion group format because it provides a unique opportunity to pose interesting questions, pick people’s brains, challenge the status quo and hear real life war stories (there are some doozies out there!).  My thanks to all of you that participated in our discussion group and those that supported the Retreat.