Advisory Opinion:
1322
Year Issued:
1989
RPC(s):
RPC 1.6; 4.1(b)
Subject:
Client secret or confidence; client fraud; failure of heirs to disclose existence of another heir; disposition of funds; duty to withdraw
The Committee understood the facts of your inquiry to concern distribution of proceeds of an estate which was handled by probate by affidavit. You were advised that the deceased had two heirs, and after paying bills owed by the deceased, you distributed the funds to the two heirs in December 1988. A few months later you learned from one of those heirs that there was in fact a third heir of whom you had not previously been advised. She returned her portion of the proceeds to you, and you hold those in your trust account. The other heir who received the balance of the funds has not responded to your inquiry to him.
The Committee was of the opinion that RPC 4.1(b) would require you to call upon your clients to correct the apparent fraud which has been committed upon the third heir. If your clients refuse to correct the fraud or refuse to authorize you to disclose it to the third party, then you would be foreclosed from such disclosure by Rule 1.6 and, in the opinion of the Committee, you should advise your clients that you were depositing the funds with the registry of the Court, advising all parties of your act, and withdraw.
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