May a trustee of a charitable trust also be paid to provide legal services to the trust?

Short answer The opinion permits a trustee to perform legal services for the charitable trust if the trustee follows Rule 4-1.8(a) and does not participate in trustee decisions about hiring or compensation.

Bar

MOLEC

Issued

1997

Apply this to your situation

This page answers the general question as of 1997. Ask about yours and see what the current Missouri Rules of Professional Conduct say for your facts, with citations.

How much weight this carries: Under Missouri Supreme Court Rule 5.30, formal opinions are binding; informal opinions are advisory. Source.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official ethics opinion. The original opinion (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A lawyer who was one of three trustees of a charitable trust asked whether the trust could employ the lawyer for legal work, including documents for real estate secured loans from trust funds.

The answer permits the trustee to perform legal services for the trust if the trustee follows Rule 4-1.8(a). It also requires the trustee to abstain from trustee decisions about hiring and compensation for that work.

Currency note

This opinion was issued in 1997, before Missouri's 2007 revisions to the Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it.

Common questions

Q: May the trustee prepare documents for loans made from trust funds?

A: The question includes those documents among the proposed legal services. The answer permits the legal work if the trustee follows Rule 4-1.8(a) and abstains from hiring and compensation decisions.

Q: May the lawyer vote as a trustee on the legal engagement or fee?

A: No. The opinion says the lawyer must abstain from any trustee decision about hiring and compensation for the legal services.

Background and rules framework

The answer names Rule 4-1.8(a) as the condition for a trustee who provides legal services to the trust. It separately requires abstention from the trustees’ hiring and compensation decisions.

Citations and references

Missouri Rules of Professional Conduct:

Rule 4-1.8(a)

Source

Landing page: https://mo-legal-ethics.org/informal-opinion/970138/
Rule revision reference: Missouri Informal Opinion 20030007

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

QUESTION: May attorney, who is one of three trustees of a 501(c)(3) charitable trust, be employed by the trust to perform such legal services required by the trustees, including preparation of necessary documents for loans from trust funds secured by real estate. ANSWER: As one of the trustees of a charitable trust, Attorney is not prohibited from performing legal services for the trust if Attorney follows the steps required by Rule 4–1.8(a). Attorney must also abstain from any participation in the decisions by the trustees regarding hiring and compensation of the attorney to perform the legal services.

What do the rules say today, for your facts?

This opinion is from 1997. Ezel checks the current Missouri Rules of Professional Conduct against your situation and cites the rules it relies on.

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