Advisory Opinion: 1963

Year Issued: 2001

RPC(s): RPC 1.7(b)

Subject: Estate planning lawyer referring client to insurance agent for insurance trust; conflict of interest

The inquiring lawyer asked whether it is ethical for a lawyer who is engaged in estate planning practice, as part of that practice, to recommend to a client that the client establish a life insurance trust, refer the client to the client’s own insurance agent, or other experienced agent, and then split the insurance commission if the lawyer is also a licensed insurance agent that is allowed by the Office of the Insurance Commissioner to receive insurance commissions. The committee stated that it has consistently determined that the hypothetical proposal of a lawyer to provide non-legal services for profit in conjunction with legal representation constitutes a non-waivable conflict of interest under RPC 1.7(b).

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.