Team members at Goosmann Law Firm/Trust Law Counsel recently attended a conference that included a seminar covering Iowa’s unauthorized practice of law (“UPL”).
The seminar speaker was an attorney that was a prior member of Iowa’s UPL commission in which the commission heard UPL claims and determined whether sanctions would be issued. One of the claims he cited involved the working relationship between a financial planner and an estate planning attorney, in which it was determined that the financial planner’s actions did indeed constitute the unauthorized practice of law and an attorney aided in this occurring.
The commission determined a few key factors in making their decision including:
1) The financial planner approved the use of legal instruments by which legal rights of others were either obtained, secured or transferred, and
2) The financial planner met with the clients and advised them of what they needed for estate planning and what documents they would need to be tailored to meet their particular situation.
Best practice would have been for the financial planner to obtain the necessary information from the clients and provide that information to the attorney. The attorney should have then met with the clients and recommended to the clients what he felt was necessary for an estate plan. Subsequently the attorney would prepare the estate plans and meet with the clients again to review and execute. Instead, the financial planner was the one that gave the legal advice and recommendation to the attorney. The attorney only served as a “scribe.” For additional information regarding this this ruling, click here.
Goosmann Trust Law Counsel values collaboration with our clients’ planning professionals, including financial planners/advisors, and believes by working together the client’s plan is more comprehensive and effective. We have great working relationships, but did want to share more information about unauthorized practice of law with our planning partners to ensure they are aware of this ruling. For further questions, please feel free to contact our Firm.