Conflicts of Interest:

What is the "Duty of Loyalty" that all fiduciaries owe their clients?

• A legal obligation to act in the client's best interest

• A financial obligation to invest the client's money

• A responsibility to provide legal advice

• An agreement to keep all client information confidential

What should a fiduciary review first before taking a case?

• The client's financial statements

• Document review and conflict check

• The fiduciary's personal investment portfolio

• The local real estate market conditions

Which type of investments typically do not create conflicts of interest for a fiduciary?

• Non-publicly traded investments

• Real property owned

• Investments in bank accounts or publicly traded securities

• Partnerships

What should a fiduciary do if they have a personal, non-publicly traded investment that may be a conflict of interest?

• Sell the investment immediately

• Keep a list of these investments to evaluate potential conflicts

• Ignore the investment as it does not pose a significant risk

• Share the investment with the client

What is the easiest type of conflict of interest for a fiduciary to avoid?

• Indirect Conflicts of Interest

• Personal Conflicts of Interest

• Direct Conflicts of Interest

• Professional Conflicts of Interest

According to the case study, why might Joe Guardian consider it a conflict of interest to hold onto the real estate limited partnership?

• The asset has depreciated significantly

• His client received a step-up in basis on the death of the caregiver

• The partnership requires additional investment

• The asset is not generating any income

What extends fiduciary duties and malpractice liability to "3rd party intended beneficiaries" of the client?

• The Duty of Loyalty

• A client database

• Lucas v. Hamm, 56 CAL.2d 583(1961)

• The estate planning documents

What should be done when a review is received that includes all persons identified with the matter, the name of the prospective client, and the date of the consult?

• Update the database to reflect 'client', 'client's spouse', or '3rd party beneficiary'

• Immediately take the case without further review

• Decline representation in writing if a conflict exists

• Communicate with all beneficiaries to ensure their wishes will be controlling

Which of the following is an example of a direct conflict of interest?

• The fiduciary has communicated with some, but not all beneficiaries

• A professional chosen by the fiduciary has interests, or has served clients who have interests, which are adverse to the client or proposed client

• The fiduciary represents competing estates and trusts (i.e. mom and dad in a second marriage)

• The attorney wants to be retained as your attorney in the referred matter

What is the most difficult type of conflict of interest to identify or to address?

• Direct conflict of interest

• Indirect conflict of interest

• Financial conflict of interest

• Personal conflict of interest