Attorney Can Name Himself as Beneficiary of Uncle-By-Marriage's Trust Without Violating Rules of Professional Conduct

Alabama's highest court finds that an attorney who prepared a trust for an uncle-by-marriage that named himself as a beneficiary did not violate professional rules prohibiting non-relatives from preparing an instrument that names the attorney as beneficiary. Cooner v. Alabama State Bar (Ala., No. 1090944, Oct. 8, 2010).

Attorney Douglas Cooner prepared a trust for his uncle by marriage, William Riley, that named Mr. Cooner as trustee and residual beneficiary. Mr. Riley became frustrated with Mr. Cooner's failure to provide him with information and he hired another attorney. The new attorney asked Mr. Cooner for an accounting and found many irregularities, including money that was unaccounted for and a power of attorney that had a forged signature. Mr. Riley sued Mr. Cooner and the case eventually settled.

The Alabama State Bar began disciplinary proceedings against Mr. Cooner. The Disciplinary Board found Mr. Cooner guilty of violating several rules of professional conduct, including the rule preventing an attorney from preparing an instrument that gives the attorney a gift unless the attorney is related to the client. The board recommended disbarment. Mr. Cooner appealed, arguing the order of disbarment did not contain specific findings of fact and that he was related by marriage to Mr. Riley.

The Alabama Supreme Court reverses and remands, finding that because the board's disbarment does not contain specific findings of fact with regard to each allegation, the court cannot conduct a meaningful review of the disbarment. The court also holds that the term "related" as used in the profession rules of conduct "includes relationships by blood and by marriage and that an affinity relationship between an uncle and his nephew is within the meaning of the term 'related.' "

For the full text of this decision, go to: https://caselaw.findlaw.com/al-supreme-court/1540793.html

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