Conflicts of interest exist in just about any professional engagement. Sometimes, however, they are not that easy to spot, especially if there is a knowledge disparity between the buyer and the seller.
Think about it: Compare your knowledge of medicine to a seasoned physician’s knowledge.
Quoting JAMA, a medical journal, “Even when doctors think they are acting without bias, their judgments and actions may still be influenced by conflict of interest.” How? When financial benefits might come into play ( tinyurl.com/4td2uy5z).
The same applies to other professionals. What’s a potential conflict when it comes to estate planning? Serving as both the estate planning lawyer as well as a fiduciary (trustee or executor) is an example.
Addressing potential conflicts upfront and in writing before an engagement is the answer.
Take a minute to look at the recommended language provided by The American College of Trust and Estate Counsel (ACTEC). See “Form of a Letter Regarding the Appointment of the Lawyer as a Fiduciary” ( tinyurl.com/2p9xesd8):
“I can serve as your [ EXECUTOR/TRUSTEE] if that is your desire. However, several potential conflicts of interest may arise from my service as your [ EXECUTOR/TRUSTEE]. One of these conflicts of interest relates to the probability that my law firm will serve as legal counsel for me as [ EXECUTOR/TRUSTEE].
“A lawyer’s independence may be compromised when that lawyer acts both as the [ EXECUTOR/TRUSTEE] and as the lawyer for the [ EXECUTOR/TRUSTEE]. The normal checks and...
from News https://www.ctpost.com/news/article/julie-jason-conflicts-of-interest-for-a-17777859.php
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