Attorney Created an IRA for a Trust Beneficiary Without Permission
My question involves legal malpractice in the state of: Colorado
RE: Probate case
I am the defendant.
Part of this case involves our trustee distributing an IRA.
I told my attorney I wanted cash payment directly from the estate and the other beneficiaries could create IRA's to get their portion.
With NO consent from me and with me having NO idea what SOCIAL SECURITY NUMBER was used... OR how that SS# was obtained...
my attorney created an IRA in my name.
Is this breach of client attorney confidentiality???
Is this identity theft???
If so what must I do OTHER than hire a NEW Lawyer with some ethics!
Re: Attorney Created an IRA Without Permission
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Quoting
Nobody-1
I am the defendant.
Given that you indicate that somebody else is the trustee, how did it come to pass that the trustee was suing you on behalf of the trust?
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Quoting Nobody-1
With NO consent from me and with me having NO idea what SOCIAL SECURITY NUMBER was used... OR how that SS# was obtained...
my attorney created an IRA in my name.
This is an attorney you hired to defend you in the lawsuit?
What did the attorney say when you asked him why the IRA was set up when you indicated that you wanted the cash, and understood the tax consequences of cashing out the IRA?
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Quoting Nobody-1
Is this breach of client attorney confidentiality?
You have not identified any confidence that the attorney shared with a third party, so not from what you've told us.
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Quoting Nobody-1
Is this identity theft?
Obviously not. Your money is in your name in your IRA.
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Quoting Nobody-1
If so what must I do OTHER than hire a NEW Lawyer with some ethics!
It's not clear that the lawyer in fact did anything other than what you wanted. It's perfectly normal for an inherited IRA to be opened in the name of the beneficiary such that the information about the funds and tax liability is properly reported to the IRS, with the disbursement made from that new account.
Re: Attorney Created an IRA Without Permission
The defendant? I'm not going to ask because it doesn't seem important.
You are a beneficiary of a trust. The trustee is distributing an IRA which is included in the trust. You wanted your share in cash. For reasons that are not clear you hoped that your lawyer would arrange this with the trustee (or the estate executor?). Instead you were given an IRA which contained your share.
So? How much will you lose in converting your IRA into cash? I think you might sue your ex-lawyer for that.
This talk of identity theft and breach of confidentiality seems rather loonie to me. Don't waste your time.
Re: Attorney Created an IRA for a Trust Beneficiary Without Permission
Why is this a big deal? If you want the cash, just liquidate your IRA and get the cash. If you are thinking that somehow the tax consequences would have been better for you if the trust took the distribution from the IRA and then the trust distributed the funds to you, that’s not likely the case. So, if the results are the same either way, I’m failing to see why this has you worked up.
Re: Attorney Created an IRA for a Trust Beneficiary Without Permission
Your post is hard to follow and who is whose attorney ....in general if the trustee is required to make a distribution ..he or she makes it as best fits the circumstances or the trust requirements ...hard to divine what your special needs are...but if A wants it in a IRA and B wants it in dimes and C wants it in her UK account and D wants it delivered in gold in Greece...not going to happen in 99.97 % of cases.
Re: Attorney Created an IRA for a Trust Beneficiary Without Permission
Quote:
Quoting
Nobody-1
My question involves legal malpractice in the state of: Colorado
RE: Probate case
I am the defendant.
Part of this case involves our trustee distributing an IRA.
I told my attorney I wanted cash payment directly from the estate and the other beneficiaries could create IRA's to get their portion.
With NO consent from me and with me having NO idea what SOCIAL SECURITY NUMBER was used... OR how that SS# was obtained...
my attorney created an IRA in my name.
Is this breach of client attorney confidentiality???
Is this identity theft???
If so what must I do OTHER than hire a NEW Lawyer with some ethics!
Are you talking about an estate, and therefore an executor or administrator, or are you talking about a trust, and therefore a trustee?
In any case, how have you been harmed? You were going to have to pay taxes on the money no matter how you got it...so if you want cash, just liquidate the IRA, take the cash and pay the tax.
Re: Attorney Created an IRA for a Trust Beneficiary Without Permission
What makes you think they even NEEDED a SSN to create the IRA? Or that the SSN would be hard to find (I bet the trust already had it)? Or your permission?
Re: Attorney Created an IRA Without Permission
Quote:
Quoting
Mr. Knowitall
Given that you indicate that somebody else is the trustee, how did it come to pass that the trustee was suing you on behalf of the trust?
This is an attorney you hired to defend you in the lawsuit?
What did the attorney say when you asked him why the IRA was set up when you indicated that you wanted the cash, and understood the tax consequences of cashing out the IRA?
You have not identified any confidence that the attorney shared with a third party, so not from what you've told us.
Obviously not. Your money is in your name in your IRA.
It's not clear that the lawyer in fact did anything other than what you wanted. It's perfectly normal for an inherited IRA to be opened in the name of the beneficiary such that the information about the funds and tax liability is properly reported to the IRS, with the disbursement made from that new account.
TO KEEP THIS SIMPLE...
Is it legal for an attorney to share personal information of a client with out permission?
Re: Attorney Created an IRA Without Permission
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Quoting
Nobody-1
TO KEEP THIS SIMPLE...
Is it legal for an attorney to share personal information of a client with out permission?
In many cases it would be legal in the sense that it is not a crime to make the disclosure. Even if it is legal, it might violate the attorney’s duty of confidentiality under the Rules of Professional Conduct (RPC) that govern the practice of law. The confidentiality rule for lawyers in Colorado is Colo. RPC 1.6, which states:
(a) A lawyer shall not reveal information relating to the representation of a client unless the client gives informed consent, the disclosure is impliedly authorized in order to carry out the representation, or the disclosure is permitted by paragraph (b).
(b) A lawyer may reveal information relating to the representation of a client to the extent the lawyer reasonably believes necessary:
(1) to prevent reasonably certain death or substantial bodily harm;
(2) to reveal the client's intention to commit a crime and the information necessary to prevent the crime;
(3) to prevent the client from committing a fraud that is reasonably certain to result in substantial injury to the financial interests or property of another and in furtherance of which the client has used or is using the lawyer's services;
(4) to prevent, mitigate or rectify substantial injury to the financial interests or property of another that is reasonably certain to result or has resulted from the client's commission of a crime or fraud in furtherance of which the client has used the lawyer's services;
(5) to secure legal advice about the lawyer's compliance with these Rules, other law or a court order;
(6) to establish a claim or defense on behalf of the lawyer in a controversy between the lawyer and the client, to establish a defense to a criminal charge or civil claim against the lawyer based upon conduct in which the client was involved, or to respond to allegations in any proceeding concerning the lawyer's representation of the client; or
(7) to comply with other law or a court order.
If the lawyer violates this rule, he may be subject to discipline by the Colorado Supreme Court’s Office of Attorney Regulation Counsel.
So the details of the disclosure matter. If the disclosure was necessary to further the attorney’s representation of the client then the disclosure is permitted even though the attorney did not have the express consent of the client. One of the things that matters with respect to any discipline of the lawyer is what harm, if any, the client suffered as a result of the attorney’s conduct. That’s one of the reasons I asked earlier why the IRA is a big deal. If you suffered no harm from it then there’s nothing that will likely be done to discipline the lawyer out of this.
If you suffered harm, then in addition to possible discipline from the Supreme Court you might also have a legal malpractice case to bring to recover for the damages caused to you. Again, though, the details matter. So far, with the few details we have, I’m not seeing anything here that would give rise to a good lawsuit or to attorney discipline.
Re: Attorney Created an IRA Without Permission
Quote:
Quoting
Nobody-1
TO KEEP THIS SIMPLE...
Is it legal for an attorney to share personal information of a client with out permission?
Whether it is or isn't is not relevant in this instance, because you have not been damaged. You are annoyed and I sympathize with your annoyance, but you are not damaged.