Supplement to Wills Trusts and Estate Administration 6

Supplement to Wills, Trusts and Estate Administration 6 th Edition Dennis Hower and Peter T. Kahn ISBN-10 1 -4180 -3933 -0 Dr. Richard Patete, J. D. Keiser University-Sarasota Campus Copyright 2007

Chapter One The Estate Plan and the Purpose and Need for a Will n The Estate Plan n n An arrangement of a person’s estate using the laws of various disciplines (wills, trusts, taxes, Insurance, and property) to gain maximum financial benefit of all the laws for the disposition of a person’s assets. During life (inter vivos) and after death

Will n n The legally enforceable written declaration of a person’s intended distribution of property after death Usually written

Will Requirements n Capacity n Legal Capacityn n Age at which a person acquires capacity to a valid will, usually 18 Testamentary capacity n n Sanity required for a person to make a will Sound mind

Vocabulary n Testator n n Male who makes or dies with a valid will Testatrix n Female who makes or dies with a valid will

Requirements n n n Writing Witnesses Signed by Testator/trix Sound mind Capacity

Probate n A court-supervised administration of a decedent’s estate n Decendent- the person who has died

Terminology - Wills n Beneficiary n n Devisee n n A person entitled to receive property under a will A person who receives a gift of real property under a will Legatee n A person who receives a gift of personal property under a will

Terminology - Intestate n n Heir n n A person dies without a valid will or a will A person who receives a gift of real property from an intestate Next of Kin n Closest blood relative of the decedent

Terminology n Ambulatory n n Codicil n n Subject to change A written amendment to a will Letter of Instruction n A document that specifies the testator’s intentions but does not formally amend or change the will

Residuary Estate n The remaining assets of the decedent’s estate after all debts have been paid and all other gifts in the will distributed

Property Distributions n n n Tenancy in Common Joint Tenancy Tenant by Entireties

Structure of the Estate Testator Letter of Instruction Estate Personal Representative Beneficiary

Trusts n n A third party instrument made during life which is effective either at death or during life Testamentary Trust n n A trust that is effective death Inter vivos trust- a trust that is effective during life

Structure of a Trustee Inter vivos gifts Trust Estate Or Corpus Settlor Beneficiary

Title n Legal Title n n Right to ownership by name Equitable Title n Right to control the asset and manage the property for the benefit of another

Trustee n n n Name of person or office that infers a person of trust Named by the testator to carry out their wishes in a trust Compare to Executor/personal represenative who carries out wishes in will

Personal Representative n n n Person who administers and distributes decedent’s estate either intestate or testate Compare to Executor/trix who carries out the provisions of the will Administrator/trix – person appointed to carry out and distribute the decedent’s estate when they die without a will

Will Substitutes n n n Joint Tenancy Life Insurance Inter vivos trust Inter vivos gift Community Property agreement Pay on Death instruments – deeds or bank accounts

Chapter Two The Concept of Property Related to Wills, Trusts and Estates n Real Property n n n Immovable, fixed or permanent E. g. Land, trees, etc. Personal Property n n Movable E. g. Cars, boats, furniture

Real Property n Realty or Real Estate n n n Immovable Affixed to land or buildings Growing on the land “Fixture” something so attached to the land as to be deemed a part of it.

Transfer n Deed n n A writing, signed by the grantor conveying title to real property to grantee. Grantor n n person who conveys to another Grantee n Person to whom real property is conveyed

Personal Property Chattel n n Movable Tangible n Property that has a physical existence and can be touched n n Eg. Boat, car Intangible n Property that has no physical existence n Eg. Check, IOU or Copyright

Estate n All property owned by a person while alive or at the time of death. n Probate Property n n Property subject estate administration Non-probate property n n Transferred without estate administration By operation of law, eg. Life insurance benefits

Forms of property ownership n n Tenants in Severalty Concurrent Ownership n n Joint Tenancy Tenants in common Tenants in entirety Community Property n N. B. Can be used as a will substitute

Tenants in Severalty n n Ownership by one person Probate Property

Joint Tenancy n n Ownership by two or more Right of survivorship n n n Ownership passes by operation of law without probate Unities of time, title, interest and possession Undivided ownership interest

Tenants in Common n n Unities of Time, Title and interest But NOT Possession Each owner controls their interest and establishes a right to take or control the whole property and share in profits

Partition n A remedy for a division of real property held by joint tenants or tenants in common so that the individuals can hold title in severalty.

Tenants by Entirety n n n A form of joint tenancy available only to husband wife Right of survivorship Added bonus, creditors of individual may not seize property of the tenancy because the entirety is considered as one entity

Community Property n n n All property, other than property received by gift, will, or inheritance, acquired by either spouse during the marriage Considered to be owned by both spouses equally Adopted by nine states – Opt in -Alaska

Separate Property n n Property owned by the husband or wife prior to their marriage OR acquired during the marriage by gift, will or inheritance

Estates in Real Property n Freehold n n Fee Simple n n An estate in real property of uncertain duration, eg. , life estate Largest and best and most extensive estate possible Life Estate n An estate held by a person during his or someone else’s life

Life Estate n n n Life Tenant Pur Autre vie-measured by the life of another Future interest-what is reserved to the grantor n n Reversion-returns to the grantor Remainder-goes to another person

Spouses right to election n Statutory right granted by law giving the surviving spouse the choice n To take against the will n n or That provided by statute

Waste n n Legal concept that allows an owner to recover for permanent damage to real property Any act or omission that changes the character or value of the property.

Leasehold Estate n n n Tenancy at will Tenancy at sufferance Tenancy for month/years n n Lasts for a fixed period of time Generally, these are tenancies operated under the terms of a lease.

Chapter Three The Participants and the Proper Court n n n Personal Representative Attorney Paralegal Probate Court Registrar Clerk or Court Administrator

Personal Representative n n Person or corporate institution that administers the estate of a decedent A position of trust and loyalty n Fiduciary duty n Act in good faith

Estate Administration Duties n Letters Testamentary n Letters of Administration n Bond or Surety

Attorney n n n Works for a represents the Estate Does not represent the heirs or beneficiaries Acts as legal advisor to estate

Paralegal n Acts under the direction and supervision of the attorney n n n Drafting of documents Data collection Client contact Cannot give legal advice Follows upon procedural issues

Probate Court n n Jurisdiction Insures executor properly administers estate by: n n n Creditors with proper claims get paid Pay taxes Gifts to heirs or beneficiary are paid

Probate n n Procedure by which a document is presented to a court to confirm it is a valid will Court may oversee distribution and payment

Probate Proceedings n Process of distribution of the estates assets and liabilities

Will Contest n Litigation challenging the validity of a will

Jurisdiction n The authority of a court to decide a certain kind of case and having the authority to enforce it E. g. Will contests and probate are in decided and handled by courts of general jurisdiction Compare to “Venue”

Venue n The particular place where a court having authority may hear and decide a case

Domicile n n The state in which the decedent intended to call home Compare with residence

Residence n A temporary place of dwelling

Types of Jurisdiction n In rem n n Jurisdiction over the property In personam n Jurisdiction over the person

Ancillary jurisdiction n Additional jurisdiction over other items of the estate which is used to make a complete disposition of assets Often times in other states E. g. property owned outside of the domicile of the decedent

Chapter Four The Law of Succession: Testate vs. Intestate n Testacy n n Death with a valid will Intestacy n Death without a valid will

Holographic Wills n n n A will written in the testator’s own hand May or may not be valid in your state Validity varies from state to state-check the statutes

Nuncupative n n n An oral will Spoken in the presence of witnesses Generally not valid except in extreme circumstances

Statutory Will n A fill-in-the-blank will created and authorized by state statute

Joint or reciprocal will n n n Usually between husband wife Made at same time and name each other as mutual beneficiary. Check validity of joint will for each state

Living Will n n A document separate from a will that expresses a person’s wish to be allowed to stay alive or to die by natural consequences Not really a will disposing of assets but more of directive

Types of Gifts in a Will n Specific bequest or legacy n n Gift of a particular item or class of personal property Specific Devise n A gift of real property

Legacy n Demonstrative n A gift of a specific monetary amount from a particular item or sale of item n n E. g. $10, 000 from sale of house General n A gift of a fixed amount of money from the general assets of the estate n E. g. I give the sum of $10, 000 to …

Residuary n A gift, either by legacy or devise, of all of the testator’s property not otherwise disposed of specifically

What happens when the gift is not present at time of death? n Ademption n n Lapse n n An intentional act by testator, while alive, to cancel or revoke the gift or to deliver the gift to another or to the beneficiary Failure to distribute a in the will because the beneficiary dies before the testator Abatement n The process that determines the order in which made by testator shall be applied to pay the decedent’s taxes, creditors and expenses

Intestacy n n Death without a valid will Distribution is made by state statute n n Kindred-persons related to one another by blood, a/k/a, next of kin Consanguinity-persons related by blood through a common ancestor

Descendants n n n A claimant related to the decedent through a lineal or collateral blood line See chart on page 106 -8 Exhibits 4. 5, 4. 6 and 4. 7

Per Capita Distribution n n Division of intestate “by the heads” Distribution without benefit of right of representation n Right of a child to receive if the parent or was still alive Distribution by the number of heads alive See examples pages 109 -10

Per Stirpes n Distribution based upon the relationship of those entitled to the estate n n Distribution by way of a class or group and not by heads or individuals Example page 111

Escheat n The passage of an intestate’s property to the state when there are no surviving blood relatives or spouses

Rights of Survivors n Surviving spouses n Right of election n n Spouse’s choice of statutory share or gift under the will Forced share n Statute that authorizes the spouse to make the choice

Divorce n n If granted after execution of the will, gift determined by state law Generally, divorce revokes the gift to the former spouse and not the will itself Gifts to former spouse usually pass to residuary beneficiary Legal separation does not change former spouse status

Marriage n n Subsequent marriage may revoke entire will-state by state analysis Compare joint tenancy created prior to marriage

Premarital agreements n n n Contracts between man and woman before their marriage where property rights are usually predetermined Occurs usually in second marriages to protect children of first marriage and to protect second spouse Compare post-marital agreement

Children n n Natural children are treated the same as adopted children Nonmarital children n n May inherit from non married parents but governed on a state by state basis Pretermitted children n Omitted child in a will Look to statute to determine affect of whether intentional or not Parents can intentionally disherit children; unlike disheriting a spouse

Chapter Five Wills: Validation Requirements, Modification, Revocation, and Contests n Requirements n n n Testamentary Intent Capacity Writing Signed by Testator/trix Witness

Testamentary Intent n n Testator must intend instrument to operate as his/her last will Usually expressed in the document

Capacity n n Sound mind Natural objects of the testator’s bounty Cannot have insane delusions Lucid intervals n Temporary restoration of sanity n Permissible to make valid will, e. g. dementia

Writing n n Must be hand written or typed Most oral wills are not valid

Signature n n n Must be signed by its maker Can be signed by a mark Intent to sign and make will

Witnesses n n n Attest to the testator’s signature Attest to intent to be bound Are capable and competent to act Disinterested Publication that it is testator’s will

Codicil n n An amendment to the Will Codicil vs. Will Codicil must have same requirements as a Will Changes the terms of the Will

Revocation of Will n Ambulatory n n Revocable and subject to change Ambulatory until death Revocation by Act tears, burns, cancel, cross out, destroy Must have intent to revoke

Operation of Law n n Rights that pass by rules of law without act or knowledge For example n n n Marriage Divorce Can revoke all or part of will or its provisions

Subsequent writing n n New will Codicil Both can revoke or change the terms of a will

Will Contests n n If will is invalid, then distribute assets through intestacy laws Grounds n n n Not properly executed No notice Requirements not adhered to Capacity revocation

In terrorem clause n A clause in a will that if a beneficiary of the will objects to probate or challenges the will and its distributions, contestand forfeits all benefits of the will

Chapter Six Preparation to draft a will n n n n Information gathering Intent of the client Family data Estate planning Assets, liabilities How are assets titled Real vs. Personal property

Preparation – cont’d n n n Insurance Inter vivos documents or agreements Taxes Children and heirs are to be identified Conditions to gifts: Precedent or subsequent

Chapter Seven Final Draft and Execution n Contents of a Standard Will n n n Introduction or Exordium or Publication General Revocation Clause Payment of debts and expenses Instructions for final burial Specific gifts Residuary Clause

Contents – cont’d n Standard Provisions n n n Appoint personal representative Appoint guardian Simultaneous death Testamentary trust Testimonium clause Signature of Testator

Contents – cont’d n Standard Provisions n Attestation of witnesses n n n Options Self-proving provisions Letter of instruction Power of Attorney Living Will Medical Power of attorney

Chapter Eight Introduction to Trusts n Terminology n n n n Trust Settlor Trustee Legal title Equitable Title Beneficiary Trust Property/Corpus Trust Instrument

Creation of a Trust

Trust n A property arrangement in which real or personal property is transferred from the settlor to one or more trustees who hold legal title to the property for the benefit of one or more beneficiaries who hold equitable title

Settlor n The creator of a trust. The gift giver or donor

Trustee n n A person of trust who holds property in trust for the benefit of one or more beneficiaries. A fiduciary (trusted person) who is required to perform all trust duties according to the term of the trust instrument and law with loyalty, honesty and good faith

Legal Title n A form of ownership giving the trustee the right to control and manage the property for another’s benefit

Equitable Title n The right of the party who holds the equitable title or beneficial interest to the benefits of the trust.

Beneficiary n A person who has the enjoyment and benefit of the property of the trust. The right to receive the benefits of the trust

Trust Property/Corpus n The real or personal property of the trust that the trustee holds and was given or donated by the settlor

Trust Instrument n The written instrument that sets forth the creation of the trust, the terms of the trust and the rights, duties and obligations of the trustee and beneficiary

Types of trusts n Revocable n n Settlor has the right to revoke or change the terms of the trust prior to death Irrevocable n Once created, it cannot be revoked or changed by the settlor

Essential Elements of a Trust n n A settlor who creates the trust One or more trustees who administer and manage the trust One or more beneficiaries who receive the benefits of the trust and who enforce the trust Real or personal property that must be transferred to the trust

Removal or Resignation of Trustee n n n n Voluntary Resignation Lack of Capacity Serious breach of trust Refusal to post bond Refusal to give accounting Crime of dishonesty Absence from state-prolonged Unreasonable failure to cooperate

Powers of Trustee n n n Delineated in trust agreement State statutes E. G. n n n Sell assets Lease property Carry on business Lend or borrow money Hire professionals

Duties of Trustee n n n Duty of performance and due care Duty of loyalty Duty to preserve and possess corpus Duty to invest corpus Duty to make payments of income and principal to beneficiaries Account to profits and losses

Liability of Trustee n n n n Breach of trust (legal/equitable) Removal Breach of any prior duties Recover assets Investment policy method is improper Compel to perform duty Loyalty to beneficiary

Cost of Trustee n n n Usually a percentage of the assets under management May be waived for family members Can be regulated by statute

Beneficiary n n Equitable interest in the corpus No right to direct distributions or investment Can enforce terms of trust May be individuals or class of people

Corpus n n Property of the trust Gift from grantor or settlor Corpus, res, trust property Real and/or personal property

Termination of trust n n Completion of the trust purpose Revocation by settlor Merger of interests (legal/equitable) Upon request of beneficiary when there is no express purpose that requires continuation of trust

Chapter 9 Classification of Trusts n Express n n Created for explicit terms or purpose Implied n Created by operation of law based upon implied intent

Express Trusts n Private n n n Settlor intends to create a trust Trustee named Beneficiary named Transfer of property Public n Same elements as private trust, except that a social benefit or charitable purpose is set forth and there is an indefinite class of beneficiaries

Cypress Doctrine n An equity court may order a gift intended for a charity that is now nonexistent be given a purpose to another charity that is near or closely related to the original charitable purpose of the settlor

Active vs. Passive n Active n n Trustee active manages trust Passive n No active duties

Inter vivos trust n n Created during the life of the settlor Can be public or private

Testamentary Trust n Created at time of death or becomes effective upon execution of will

Rule against Perpetuities n n Fixes a time period within a future interest must vest Rule: no interest is valid unless itvests, if at all, not later than 21 years, plus the gestation period, after some life or being at the time of creation

Implied Trusts n Resulting n n Created by operation of law from circumstances implied from the intentions of the parties. Can be a remedy to litigation Constructive n Involuntary trust created by operation of law to recover property from a person who obtained possession or legal rights illegally or improperly

Miscellaneous trusts n Spendthrift n n Totten n n Created for beneficiaries who are financially irresponsible Pay on death Sprinkling n Trustee has authority and discretion to accumulate or distribute income, principal or both among beneficiaries in varying amounts

Revocable Living Trusts n n n n Same conditions apply as for trusts in general Can be an advantage over a will and can be considered a will substitute since it avoid probate Reduce cost of estate administration Avoids publicity No court supervision Tax savings Allows settlor to manage or dictate assets and distributions after death

Disadvantages of Living trust n n Costly to create Settlor must transfer assets into trust and give up control during life

Pour Over Will n A will provision in which the testator directs the residue of the estate into an existing living trust

Irrevocable Trusts n n Cannot be changed or the corpus returned after gifted Terms may be changed during settlors life, but trust continues

Trust Administration n Pre-death n Manage trust property n Post-death n n n Preserve and maintain corpus n n File tax returns n n n Obtain EIN Notice to beneficiary Open account Transfer funds Collect, preserve and value corpus Pay creditor claims File tax returns Distribute income or principal to beneficiary

Chapter 10 Estate Planning n Considerations n n n Client data Federal and state gift and estate taxes Estate administration expenses Forced liquidation Termination of employment

Documentation n n Wills Trusts Power of Attorney Living Will Life Insurance n Periodic review is recommended in the event of a change in life circumstances

Tax considerations n Marital Deduction n Unlimited amount of the decedent’s gross estate which may be given to the surviving spouse without being subject to taxes being levied against the estate

Bypass Trusts n n Often called A-B trust, credit shelter trust, residuary trust or family trust A portion of the deceased spouse’s estate passes to a trust rather than directly to surviving spouse Reduces the surviving spouses trust Usually surviving spouse is given a life estate in the trust

Charitable Trusts n Tax laws allow a deduction form the estate for this gift, thus reducing the taxable amount of the estate

Tax savings that reduce the Gross estate n n Gifts made during donor’s life Powers of Appointment Trusts that qualify for marital deduction Life insurance

Power of Appointment n Created in a will or trust that gives a person the authority or “power” to select the nominee of the gift

QTIP n Trust that will qualify for the marital deduction in which the surviving spouse receives all of the income for life but is not given a general power of appointment

Life Insurance n Whole Life n n n Term Life n n Pays contract amount on death Builds a cash value during life Pays contract amount on death Builds no cash value during life Ends at a specific age Universal life n Combination of Whole and Term N. B. All policy payments pass outside of the estate and are not subject to probate or estate administration

Life Insurance Trusts n n n A trust created that cannot be revoked or amended which is established by a settlor who assigns the ownership of a new or existing life insurance policy on the settlor’s life Settlor contributes money annually to the trust to pay the premiums Policy proceeds are payable to the trust on the death of the settlor

Postmortem Estate Planning n n Estate planning the occurs after the death of the testator/settlor E. G. - Disclaimer Allows a beneficiary or heir to refuse a gift by will, trust or inheritance without any adverse tax consequences N. B. Results in a tax savings n

Chapter 11 Long-Term Care n Long-term care n The support people need when they can no longer care for themselves because of infirmity, frailty, disability or a lingering illness

Resources to pay for long-term care n n n Social Security SSI Medicaid Medicare Insurance Personal assets

Chapter 12 Personal Representative: Types, Duties, Pre-probate Duties and Appointment n Personal Representative n Anyone empowered or authorized to administer the estate of the deceased, whether the deceased died testate or intestate

Pre-Probate Duties n n n Search for Will and personal or business records Notification of death to others Obtain death certificate Family conference Being appointed Bond

Probating (Proving) Will n n Witnesses present at time of will signing Testator declaration of intent to sign will Testator did sign will Testator over the age of 18

Letters of Authority n Letters Testamentary n n Authority granted to PR when there is a will Letters of Administration n Authority granted to PR when there is no will and/or testator died intestate

Chapter 13 Probate and Estate Administration n Probate n Estate Administration n n The act or process of proving the validity of the will Procedures and duties of the PR which include the collection and inventory of assets, payment of approved claims and taxes, final distribution of the assets to the beneficiary and heirs entitled to receive

Small Estate Settlement and Administration n Small Estate n n n Estate with few or limited monetary value The amount varies by state Amount set by statute Avoid the lengthy and costly probate process Collection by affidavit – an alternative abbreviated process n Title and possession of personal property is transferred w/o need of third parties from estate to beneficiaries or heirs

Summary Administration n Applies to smaller estates that do not exceed the maximum limit set by statute Is an abbreviated probate process Shorter and simpler than regular estate administration

Family Settlement Agreement n Private written agreement among heirs or beneficiaries unanimously agreeing on the distribution of the estate without supervision by the court

Commencing Probate and Estate Administration n n n Petition for probate of will Petition for administration Publication of proceedings Notice of rights of beneficiaries Pay funeral expenses Miscellaneous duties before hearing

Probate and Estate Administration-cont’d n n n n n Hearing to prove will Selection of PR Admit will-grant administration Issue Letters Testamentary/Administration EIN Open Estate checking account Notice to Creditors Appoint guardians or trustees Admit foreign will to probate

Procedures before Estate Distribution n Open safe deposit box Collect and preserve assets Prepare inventory n n Prepare appraisal n n n Detailed list of property, description and value at time or death Market based evaluation of property Prepare schedule of non-probate assets File inventory and appraisal

Distribution of Estate; Payment of Claims n n n Distribute family allowances or exempt property to spouse and/or minor children Attend hearing on creditor’s claims and pay approved or allowed claims Transfer of assets

Note to Editor

Final Account and Closing the Estate n n File Final Account; Petition for Settlement and Distribution Give notice of hearing for Final account and distribution Prepare and file federal and state income taxes with final account Request order approving of final accounting

Final Account and Closing the Estate-cont’d n n Granting of final account and distribution by the court Collect receipts for distribution of assets to beneficiary/heir Petition for Discharge of PR Cancel PR bond

PR Liability n n The PR who acts reasonably and in good faith faces no personal liability Stray from this general rule or violate fiduciary duty, PR may be personally liable

Chapter 14 Informal Probate Administration n Generally reduces the time required to complete the administration of the estate Fewer steps and less complicated proceedings Allows for easy distribution, since there is no notice requirements or court approval required

Application for Informal Probate n n n Appointment of PR Apply for Informal Probate Acceptance by Registrar of Wills n n n Meet all requirements Affirmed statements Applicant is interested person Proper venue 120 hours since decedent’s death Those demanding notice received it

Duties and Powers of Personal Representative n n n n Proper distribution of estate assets according to will Notice to interested persons Payment of creditor claims Inventory Property Hold and manage assets Final accounting Close the estate

Chapter 15 Tax Consideration in the Administration of Estates n Income Tax n n Death Tax n n Levy of tax on income Levy of tax on property transferred at death Gift Tax n Levy of tax on property transferred during life

Unified Credit n n n A credit against the federal unified transfer tax on gifts and estates The credit is subtracted from the tax due See Exhibits 15. 2 and 15. 3

Marital Deduction n A testator’s estate is entitled to the marital deduction for transfer between spouses if there is a surviving spouse and if the decedent leaves all or a portion of the estate to the surviving spouse

Uniform Transfers to Minors Act n n Allows any kind of real or personal property to be transferred to a custodianship as a gift to a minor Gift is irrevocable

Generation Skipping Transfers n n A transfer of assets to a person two or more generations below the transferor E. g. , from grandparent to grandchild

Trust-generation skipping n n A trust the partially avoids the federal gift and estate tax on property to a beneficiary two or more generations below transferor Tax: federal when the value exceeds the lifetime exemption n Currently $2 M

Tax Returns n PR responsibility n n n n n Federal Income State Income Federal Fiduciary Income State Fiduciary Income Federal Gift State Gift Federal Estate Tax (generation skipping) State Estate Tax State Inheritance Tax

Gross Estate n n All assets owned by the decedent at death and the value of any interest held in property, less liabilities owed on that property Valuation is a date of death valuation

Taxable Estate n After a determination of the gross estate, then deductions and exemptions are applied to determine the taxable estate n n n Expenses, liens, debts, taxes Losses during the estate Marital deduction Charitable deductions State Death tax Credit amounts, such as unified credit

Chapter 16 Ethical Principles n n Standards and Guidelines that apply to the legal profession Written and published by various organizations n ABA-American Bar Association n n Model Rules of Professional Responsibility Model Code of Professional Responsibility

Ethics n At the national level, the Rules and Codes are recommendations that may be adopted by the states n Opinions are issued interpreting the Rules and Code giving further clarification

Cannons n General rules or principles that establish behavior and professional responsibility

Disciplinary Rules n Minimum professional conduct that if violated may lead to disciplinary action against an attorney

Attorneys and Paralegals n n n Many states make the attorney liable for that actions of the paralegal Done by Rules or Codes of disciplinary conduct Some Organizations and States regulate or make recommendations for the regulation of paralegals

Professional Standards for Paralegals n n n American Association of Paralegal Education National Federation of Paralegal Associations National Association of Legal Assistants

Unauthorized Practice of Law n n To engage in legal work that involves exercising professional judgment or advice usually reserved for an attorney. Can be a misrepresentation of the persons status n Penalty: Disciplinary conduct, civil liability or criminal sanctions

Privileges n Attorney-client n n A rule that confidential communication in the course of the professional employment between the attorney and client may be divulged or compelled to divulge by the attorney without the client’s consent Compare: Work Product Privilege: work of an attorney for a client that includes private memo in anticipation of trial or litigation does not have to be divulged

The End Supplement to Wills, Trusts and Estate Administration 6 th Edition Dennis Hower and Peter T. Kahn ISBN-10 1 -4180 -3933 -0