Huguette Clark’s estate litigation reaffirms some lessons that we already know. Primarily, caretakers and advisors must take precaution when conflicts of interest arise, namely when they receive more benefits from a client than they would otherwise receive for their services.
We all know that, as advisors, we should take extra steps to ensure that the best interests of the client are the top (and only) priority. Yet, what happens when the advisor becomes a trusted friend, and the lines separating each role blur? Being advisor and beneficiary creates a conflict of interest, no question. And we will likely learn more about separating these roles as the Clark litigation continues.