One of the ways to avoid conflicts of interest in estate administration is to have open communications channels between the Personal Representative and the beneficiaries.
Conflicts such as Will Contests or other estate administration lawsuits do arise. Believe it or not, beneficiaries do fight over money. However these conflicts can be minimized with some effort by the Personal Representative.
Conflicts of interest can also arise in an estate planning situation. For example, a husband and wife may call the same lawyer to draft their Will, Trust, or other estate planning document. Other times, it may be adult children who create conflicts with their parent’s estate planning. One can see how multiple conflicts of interest between all of the interested people could arise for a estate planning lawyer.
However, when an attorney represents multiple people who have similar interests in an estate, an attorney can represent a husband and a wife – or even an interested beneficiary – as long as all potential conflicts of interest are explained to person whose estate or estates are being planned.
The lawyer’s clients must be advised of the conflict and the legal implications related thereto. The lawyer should explain the advantages and the risks of multiple representation. In the example of the husband and a wife, if they both are informed and consent to the single representation by the lawyer, then there is likely no conflict of interest for the lawyer.
Nonethless, it is possible that serious conflicts can arise during the estate administration process. this can force lawyers to withdraw as counsel for the husband or wife or, in the instance of estate administration, the Personal Representative of the estate.
Managing such conflicts are, of course, the responsibility of an attorney. However, it is important for beneficiaries to pay attention to their potential conflicts of interest – either emotionally or financially – and adequately raise them with their Minnesota estate planning attorney.
Please contact Joseph M. Flanders for more information about avoiding conflicts of interest in estate situations.
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