May a Vermont lawyer offer college financial planning alongside a law practice?

Plain-English summary

The requesting lawyer proposed a financial planning business for families considering college costs, possibly including insurance products. The lawyer expected to keep that business separate from the law practice and to allow planning customers to choose any lawyer for legal work.

The opinion applied Vermont Rule 5.7. If law-related services are not distinct from legal services, the professional conduct rules apply. Even where a lawyer operates a separate controlled entity, the lawyer must take reasonable measures to ensure recipients understand that the services are not legal services and that lawyer-client protections do not apply. The opinion emphasized explaining the difference in confidentiality and privilege before the services begin, preferably in writing.

The opinion also called for separate billing for legal and law-related services. It noted that closely entwined services may be impossible to distinguish, in which case disclosure alone may not keep the full professional conduct rules from applying.

In practice

For the proposed financial planning business, the opinion permits the arrangement only with a clear separation from the law practice and an explanation of the different relationship to planning customers. Its discussion places the burden of showing reasonable measures on the lawyer.

Common questions

Q: Can a lawyer run a separate college financial planning business?

A: The linked opinion says yes, while applying Rule 5.7 to the manner in which the lawyer provides and distinguishes the nonlegal services.

Q: What must a planning customer understand?

A: The opinion says the customer must understand that the service is not legal advice and does not carry the protections of a lawyer-client relationship.

Q: Does a separate business entity automatically remove the ethics rules?

A: No. Under the opinion's reading of Rule 5.7, a lawyer controlling a separate entity must take reasonable measures to communicate the distinction; closely entwined services may remain subject to the full rules.

Background and rules framework

The linked PDF primarily discusses Vermont Rule 5.7 and its comments. It also mentions Rule 1.8(a) where a legal client is referred to the lawyer's controlled service entity and Rule 8.4 as a generally applicable conduct rule.

Citations and references

Vermont Rules of Professional Conduct:

• Rules 1.8(a), 5.7, and 8.4

See also

• NY State Bar Op. 1155: Dual practice as lawyer and financial planner

Source

• Landing page: VBA conflict of interest opinions
• Original PDF: Vermont Advisory Opinion 09-02
• Index discrepancy: the landing page describes this link as concerning the “appearance of impropriety,” but the PDF's synopsis says, “The inquiring attorney wishes to offer non-legal services in addition to the attorney's law practice.”