Trusts & Estates
Thorsen v Richmond SPCA: Third-Party Beneficiary Claims Against the Drafting Attorney
by Jennifer Villier, JD | Business Law Faculty, WealthCounsel
The strict privity rule has long protected estate planning attorneys from lawsuits brought against them by disappointed beneficiaries. While some states have crafted broad exceptions to strict privity in the estate planning context, in the majority of states, absent fraud, or a malicious or tortious act, attorneys cannot be sued by non-clients in an estate planning matter. Nevertheless, estate planners should be aware of the potential for third-party liability as case law interpreting strict privity law continues to develop.
For example, a recent case out of the Virginia Supreme Court, which found a drafting attorney liable for the intended third-party beneficiary’s loss, may be of interest to estate planners nationwide given the breadth of the holding and its examination of precedent in other jurisdictions.
Download this thought paper to learn 3 best practices to which every estate planning attorney should adhere to minimize risk.
Complete the form to get your free guide
Related Resources
Preservation of S-Corp Status in Trust Administration
Download the article to find out why it is critical to examine how to preserve S-corp status at all stages of the estate planning life cycle.
Learn MoreAdapt Your Law Practice Checklist
In light of COVID-19, see how you can adapt your law practice with this free checklist.
Learn MoreA House Divided: Deadlock in a 50-50 Partnership
Read about the destructive consequences that can emerge if a partnership agreement lacks provisions for resolving such an impasse and learn what you can do to help your business clients avoid this type of situation by reading, “A House Divided: Deadlock in a 50-50 Partnership.”
Learn More