Can a lawyer work with a financial planner who fills out revocable trusts, or pay the planner to send clients to the lawyer?

Plain-English summary

A financial planner obtained a generic revocable-trust form and, through agents using a brochure listing the trust's advantages and disadvantages, cold-canvassed or advertised for prospects, explained the trust to them, and filled it out based on the client's information. The inquiry asked whether that activity was the unauthorized practice of law, and whether a lawyer ("X") could properly accept clients the planner referred (to review the trust, or where the planner suggested Lawyer X to a client without a lawyer) or appear at the planner's seminars to explain the trust's legal ramifications. In each scenario Lawyer X would bill the client a separate fee and the planner would charge his own fee.

The opinion concluded that the planner's described activities may constitute the unauthorized practice of law, so Lawyer X might be deemed to be aiding a nonlawyer in the unauthorized practice of law in violation of Rule 5.5(b). On the referral question, the committee concluded that if Lawyer X promised or gave the planner anything of value to initiate contact with a prospective client, or gave anything of value for recommending Lawyer X's services, that would violate Rule 7.2(b). On the seminar question, the committee concluded that if the planner's activities do not constitute the unauthorized practice of law, Lawyer X's presence at the planner's seminars and his explanation to the assembled group of the trust's legal ramifications would not violate the Rules.

Currency note

This opinion was issued in 1991, before Illinois adopted the 2010 Illinois Rules of Professional Conduct. The ISBA Board of Governors affirmed the opinion in May 2010 as generally consistent with the 2010 Rules (Rules 5.5(a) and 7.2(b)), while cautioning that the specific standards referenced may differ from the 2010 Rules. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule or requirement mentioned here.

Common questions

Q: Can a lawyer accept clients referred by a financial planner who fills out their trusts?

A: The opinion concluded the planner's activity may be the unauthorized practice of law, in which case the lawyer could be deemed to be aiding a nonlawyer in the unauthorized practice of law under Rule 5.5(b).

Q: Can a lawyer pay or give a financial planner anything of value for sending clients?

A: No. The opinion concluded that giving the planner anything of value to initiate contact with prospective clients, or for recommending the lawyer's services, violates Rule 7.2(b).

Q: Can a lawyer speak at the planner's estate-planning seminars?

A: The opinion concluded that if the planner's activities are not the unauthorized practice of law, the lawyer's appearance at the seminars and group explanation of the trust's legal ramifications would not violate the Rules.

Background and rules framework

The opinion interpreted Rule 5.5(b) (assisting a nonlawyer in the unauthorized practice of law) and Rule 7.2(b) (a lawyer may not give anything of value for recommending the lawyer's services or for initiating contact with prospective clients), applying them to a lawyer's arrangement with a financial planner who prepared trust documents (Model Rules 5.5, 7.2).

Citations and references

Rules of Professional Conduct:

• Model Rule 5.5 (unauthorized practice of law) / Illinois Rule 5.5(b)
• Model Rule 7.2 (advertising; giving value for recommendations) / Illinois Rule 7.2(b)

See also

• ISBA Ethics Op. 90-13: Bank Preparing a Land Trust
• ISBA Op. 25-02: For-Profit Referral Service
• ISBA Ethics Op. 13-03: Nonlawyers in FINRA Arbitration

Source

• Landing page: https://www.isba.org/ethics/opinions/9019