"Couples clause"

[carl.r.carpenter]

I have just started an internship, and we want to update our client agreements to add a "Couples clause". Something to the effect of "a couple is one client and all information given to the planner must be known / disclosed to both members of the couple (i.e., no secrets about hidden assets, trusts, significant others, etc.)". Would anyone be willing to send me a copy of the language they use in their contract, and give us permission to use the same or similar language?

[benj]

: I have just started an internship, and we want to update our client agreements to add a "Couples clause". Something to the effect of "a couple is one client and all information given to the planner must be known / disclosed to both members of the couple (i.e., no secrets about hidden assets, trusts, significant others, etc.)". Would anyone be willing to send me a copy of the language they use in their contract, and give us permission to use the same or similar language?

Carl, I think there's a variety of approaches and concerns here. At our state bar association's estate planning seminar this last year, one presenter did an entire presentation (including about 70 pages of examples) on conflict of interest issues in these kinds of settings. That said, here's our most recent verbage covering what I think you're getting at. (No guarantees; worth exactly what you're paying for it!)

"You acknowledge that, absent other instructions and agreement, we consider married couples to be one client. Unless otherwise noted in our engagement letter, our counsel will be based on achieving the best result for the marital community considered as a whole. Any information communicated to us by one partner may be shared with the other. Authorizations given by one of you will bind both of you."

Good luck.

[110300.3003]

I concur with all of these concerns about potential problems. My clause is much simpler, a paraphrase is "client agrees to allow the adviser to share all information as he sees fit in the ordinary course of business". This was clearly designed to allow flexibility. That said, I can't think of a single "couple" whose interests are the same!

[carl.r.carpenter]

Thanks Ben and Tony, that's exactly the kind of input I was looking for. Regards, Carl