Which statement describes the unauthorized practice of law?

Which statement describes the unauthorized practice of law?

• A. Advising a client that their will might need to be amended in light of changes in the law.
• B. Informing a client which assets will or will not be subject to probate.
• C. Advising a client that they should establish an irrevocable instead of a revocable trust.
• D. Advising a client as to potential 'red flags' in their estate documents.

Answer: (C)

The important idea is that giving advice on the legal structure and implications of estate planning is practicing law. Advising a client that they should establish an irrevocable trust instead of a revocable one is making a legal recommendation about the form of the trust and how it will operate under the law. That kind of guidance typically requires a licensed attorney, so a non-lawyer giving that advice would be engaging in unauthorized practice of law. The other statements involve more general planning information or discussions of probate mechanics and document review without prescribing a legal form or interpreting the law to determine the best legal structure. They don’t amount to giving the kind of legal opinion that would constitute unauthorized practice.

The important idea is that giving advice on the legal structure and implications of estate planning is practicing law. Advising a client that they should establish an irrevocable trust instead of a revocable one is making a legal recommendation about the form of the trust and how it will operate under the law. That kind of guidance typically requires a licensed attorney, so a non-lawyer giving that advice would be engaging in unauthorized practice of law.

The other statements involve more general planning information or discussions of probate mechanics and document review without prescribing a legal form or interpreting the law to determine the best legal structure. They don’t amount to giving the kind of legal opinion that would constitute unauthorized practice.