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The Florida Bar
www.floridabar.org
PROFESSIONAL ETHICS OF THE FLORIDA BAR

OPINION 62-28
November 1, 1962

Provided certain conditions are met, there is nothing unethical in a lawyer organizing a holding company consisting of himself and other members of his family, who immediately give him full authority to act on behalf of the corporation, to receive title to real estate and other property of clients.

Canon: 6

Chairman Holcomb stated the opinion of the committee:

A member of The Florida Bar posed a question to the Professional Ethics Committee as to whether there is anything unethical in an attorney organizing a holding company consisting of himself and two members of his family, who immediately give him full authority to act on behalf of the corporation, and then the attorney using the corporation to receive title to real estate and other property for clients, and opening a bank account to receive funds of clients, but the corporation owns nothing in its own right and never has property or money of anyone except his clients and himself, no charge being made on behalf of the corporation or the attorney for this service.

The Committee finds nothing improper or unethical, except as it might be unlawful for such a corporation to function without qualifying as a trust company under the law, and so long as a full disclosure is made to clients that the corporation consists of the lawyer and members of his family and has no assets other than those of the clients and that the clients are also informed that their properties, as well as those of other clients, will be held by the corporation.

[Revised: 08-24-2011]