May an attorney for an estate purchase an asset of that estate?

Plain-English summary

The committee considered whether an attorney acting on behalf of an estate could purchase an asset of that estate. It concluded the purchase is ethically permissible provided there is full and complete disclosure to all interested parties, all of whom consent, citing DR 5-104(A).

Currency note

This opinion was issued in 1979, under Virginia's former Code of Professional Responsibility, before the Virginia State Bar's adoption of the Rules of Professional Conduct effective January 1, 2000. The committee note states that, under Rule 1.8(a), a lawyer may not enter into a business transaction with a client unless the client is given an opportunity to seek independent advice and there has been full disclosure and consent in writing. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Could an estate's attorney buy an asset from the estate?

A: Under this 1979 opinion, yes, but only with full and complete disclosure to all interested parties and the consent of all of them.

Q: What did current Rule 1.8(a) add to the analysis?

A: The committee note records that current Rule 1.8(a) requires that the client be given an opportunity to seek independent advice and that disclosure and consent be in writing.

Background and rules framework

The opinion applied the former Code's DR 5-104(A) to a lawyer's purchase of an estate asset, a business transaction touching the lawyer's representation. The committee note maps the question onto current Virginia Rule 1.8(a), corresponding to ABA Model Rule 1.8(a) on business transactions with a client.

Citations and references

Rules of Professional Conduct:

• DR 5-104(A) (former Code)
• Virginia Rule 1.8(a) (business transactions with a client) (cited in the committee note)
• ABA Model Rule 1.8(a) (business transactions with a client)

See also

• VA LEO 1041: Business Transaction With a Client When Interests Differ
• VA LEO 1593: Accepting Corporate Stock as a Legal Fee

Source

• Landing page: https://vsb.org/Site/about/rules-regulations/leo-opinions.aspx
• Original PDF: https://www.vsb.org/common/Uploaded%20files/LEOs/0340.pdf

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

LEGAL ETHICS OPINION 340

ATTORNEY FOR ESTATE – PURCHASE OF ESTATE ASSET.

An attorney acting on behalf of an estate may ethically purchase an estate asset provided there is full and complete disclosure to all interested parties all of whom consent thereto. [See II: DR:5-104(A).]

Committee Opinion
November 2, 1979

Legal Ethics Committee Notes. - Under Rule 1.8(a), a lawyer may not enter into a “business transaction” with a client unless the client is given an opportunity to seek independent advice, and there has been full disclosure and consent in writing.