Rules to Follow When Working With Referral Sources
Attorneys are bound by many different sets of rules regarding how they interact with clients,
prospects, and referral sources. To properly represent a client, an attorney may need to refer
the client to another attorney or advisor for their specialized expertise, such as a financial
professional, tax advisor, or insurance agent.
To ensure that all parties have a mutually beneficial relationship, the following are some
American Bar Association model rules that attorneys must adhere to when working with other
professionals.1
American Bar Association Model Code of Professional Conduct Rule 7.2: Communications
Concerning a Lawyer's Services
The American Bar Association's rules of conduct protect attorneys, clients, and referral sources.
Lawyers can establish reciprocal referral relationships with other attorneys and nonlawyer
professionals as long as those referral relationships are not exclusive.2 For example, if our
estate planning client needs assistance from a financial advisor, we must recommend a few
different advisors. In selecting who to refer to the client, we must also ensure that our
recommendations do not interfere with our professional judgment3 and the client knows about
the arrangement.4 This ensures transparency and allows the client to make informed decisions
when looking for other professionals.
As a matter of ethics and integrity, lawyers cannot receive financial incentives or compensation
in exchange for referrals. However, referrals can express appreciation through nominal gifts of
little monetary value as a gesture of gratitude.5 This rule prevents conflicts of interest that may
arise from financial arrangements between attorneys and other professionals.
American Bar Association Model Code of Professional Conduct Rule 1.6: Consent for Involvement of
Non-Clients
Attorney-client privilege protects confidential communications between a lawyer and their client.
Rule 1.6 protects this privilege and the client's privacy. Clients must consent before an attorney
can share privileged information with referral sources, other professionals, or the client's family
members.6 Your clients may want their advisors involved in the estate planning process
because they have relevant information to share (e.g., bank account balances, policy
information, prior tax filings) and can offer helpful insight.
We welcome the opportunity to work with you to better serve our mutual clients. To make sure
that we fulfill our ethical obligations, we may have the client sign a third-party waiver form that
grants us permission to share relevant information with you or to have you be part of the
planning session we have with the client.
To help ensure that our clients have a comprehensive estate plan, we sometimes need to
assemble a team of trusted professionals who can contribute their expertise to achieve
incredible client outcomes. We appreciate working with you and look forward to working with
you more in the future.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
