A Writing Assignment
for FINA 448 – Estate Planning
Consider the following situation: Mary Poppins is a 70 year-old widow whose husband left her with an
adequate inheritance consisting of a home, a portfolio of financial assets and a small pension for life. She
has approached you (a well respected estate planner) and asked that you “take over” her financial affairs
because it would be in everyone’s best interest. For your trouble, she offers to pay you a flat hourly rate, a
modest commission on the “vehicles” you select to better manage her financial affairs plus reimbursement
for any additional associated expenses. Furthermore, she wants her son (a licensed insurance and stock
broker) to handle the associated financial transactions. Unknown to Mary, her son has a relationship with
you in that he pays you a referral fee for business sent his way through your recommendations. Also,
Mary has two daughters. Both are unaware that Mary has approached you and they are generally
uninformed of Mary’s financial affairs.
a) Please discuss how the ACDs of estate planning relate to the above situation. For each principle, first describe the principle, then discuss how it applies to the situation.
i) A _ _ _ _ _ _ _ _ _ _ _
ii) C _ _ _ _ _ _ _ _ _ _ _
iii) D _ _ _ _ _ _ _ _ _ _ _
b) How do the two basic obligations of the estate planner each relate to the above situation?
c) Please describe and briefly discuss two issues of confidentiality within the context of the situation above.
d) Please describe and briefly discuss two issues that concern compensation in the situation above.
e) Please describe and discuss potential conflicts of interest that are present in the above situation.