Committee On Professional Ethics v. Baker

Facts

D is a sole practitioner with a focus primarily on real estate, probate, estate planning, and trusts. Rex Voegtlin is a certified financial planner and sole shareholder of Diversified Resource Management, Inc. Voegtlin was presenting seminars in which he touted living trusts as an estate planning device. Voegtlin urged people to attend and learn 'how to avoid probate and minimize estate taxes with an estate plan that includes a living trust.' Voegtlin condemned probate as too expensive and time-consuming. Miller, a lawyer, was a trust officer for Hawkeye Bank and Trust of Des Moines. Miller attended one of Voegtlin's seminars and met him for the first time. The two agreed to work jointly in putting on Voegtlin's seminars. Miller's reason for doing so was to attract new business for his bank. The two conducted about eight to ten of these joint seminars from October 1989 to May or June 1990, when Miller quit. About 90 to 100 people attended the first three or four of these seminars. From that point on attendance fell to about 50 or 60. Miller and Voegtlin met with D in August 1989. Miller and Voegtlin asked D if he would accept referrals from them. D told the two he would accept referrals from them for the preparation of living trusts and related documents, and he began doing so in the fall of 1989. Clients would go for consultations with Voeglin and Miller who would talk about various estate plans, discuss living trusts and wills and their differences and get a consensus of which plan was best for each client and then tell the clients they needed to employ a licensed attorney. They would give a list of licensed attorneys.  Most people picked D to be the attorney as he was competent and reasonably priced. D accepted about 100 of these referrals. D would get information on a handoff and tell the clients to bring the trust documents to the meeting. The documents frequently named Voegtlin or Diversified as the person to fund the trust. Voegtlin's wife--also a certified financial planner--usually performed this task. Funding the trust simply means having the clients sign whatever forms or documents that are necessary to transfer personal property from the clients' names to the living trust. Voegtlin's fee for funding the trust and financial advice related to this task was $1000. D furnished Voegtlin a sample living trust and accompanying documents that D was using for the clients Voegtlin and Miller were referring to him. It was alleged that Voegtlin was practicing law by recommending and filling in the forms/documents. P stuck their noses into the operation. The Committee published opinions regarding the marketing of living trusts. They stated that it was improper for Iowa lawyers to participate in living trust programs like those conducted by Diversified. P refused to provide D with an advisory opinion about his inquiries. P filed a complaint against D.  After finding that the allegations of the complaint were true, the commission recommended that D be publicly reprimanded for (1) aiding in the unauthorized practice of law; (2) permitting others to influence his professional judgment in providing legal services to clients referred to him, resulting in a conflict of interest; and (3) accepting improper referrals.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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