Advisory Opinion 2158.

• Case Date: January 01, 2007
• Court: Washington

Washington Ethics Opinion 2007. Advisory Opinion 2158. Released: July 9, 2007 January 1, 2007Advisory Opinion: 2158Subject: How RPC 1.15A applies to monies held as a fiduciary for guardianship and probate mattersOpinion: INQUIRY The inquiring attorney is appointed as a personal representative or executor in complex and contested estate matters, acts as a director of a guardianship service, and also acts as a professional guardian and trustee. In these capacities, her "routine" is to invest monies in other than FDIC insured trust accounts under RPC 1.15A, such as "mutual funds" for the purpose of securing a better rate of return on the funds invested. The inquiring party notes that RPC 1.15A, specifically Comment 3, seems to conflict with statutes and case law concerning handling investments when acting in a fiduciary capacity other than as an attorney. The inquiring party requests an opinion as to how the attorney is to apply the RPC 1.15A "in this setting, since the comments indicate something other than what statutes and case law allow". APPLICABLE RULES RPC 1.15A provides as follows: (a) This Rule applies to (1) property of clients or third persons in a lawyer's possession in connection with a representation and (2) escrow and other funds held by a lawyer incident to the closing of any real estate or personal property. The comments to RPC 1.15A, § [3], provides as follows: [3] This Rule applies to property held in any fiduciary capacity in connection with a representation, whether as trustee, agent, escrow agent, guardian, personal representative, executor, or otherwise. RPC 1.15A(c)(1) provides that: A lawyer must "deposit and hold in a trust account funds subject to this Rule pursuant to paragraph (h) of this Rule. RPC 1.15A(h)(I) provides as follows: Trust accounts must be interest-bearing and allow withdrawals or transfers without any delay other than notice periods that are required by law or regulation. In the exercise of ordinary prudence, a lawyer may select any bank, savings bank, credit union or savings and loan association that is insured by the Federal Deposit Insurance Corporation or National Credit Union Administration, is authorized by law to do business in Washington and has filed the agreement required by ELC 15.4. Trust account funds must not be placed in mutual funds, stocks, bonds, or similar investments. DISCUSSION...