STEP Client Advisory & Consultation 2

Question 1

A practitioner discovers mid-consultation that a client's stated goals conflict with the interests of a beneficiary the client is also seeking advice about. What is the most appropriate first step?

Accepted Answer

Disclose the conflict and obtain informed consent or decline to act for one party

Answer

STEP ethics require disclosure of conflicts of interest and either obtaining informed consent or ceasing to act for one of the parties.

Question 2

When advising an elderly client who may have diminished capacity, which action best protects both the client and the practitioner?

Accepted Answer

Document capacity assessments and consider involving a medical professional

Answer

Documenting capacity and seeking medical input protects the vulnerable client and provides evidence that the practitioner acted appropriately.

Question 3

A married couple seeks joint estate planning advice. Midway through the process, the husband privately discloses information that creates a conflict with his wife's interests. How should the practitioner respond?

Accepted Answer

Cease acting for both clients unless both consent to continued representation with the information shared

Answer

When confidential information creates a conflict in joint representation, the practitioner must generally cease acting for both unless informed consent is given.

Question 4

Which factor is LEAST relevant when establishing a client's risk profile during an initial estate planning consultation?

Accepted Answer

The practitioner's personal investment philosophy

Answer

The practitioner's personal philosophy is irrelevant; the profile must reflect the client's own objectives, attitudes, and circumstances.

Question 5

A practitioner is advising a non-domiciled client on UK estate planning. The client asks whether they need to disclose overseas assets on their UK tax return. The practitioner is uncertain. What is the best course of action?

Accepted Answer

Research the issue thoroughly or refer to a specialist before providing advice

Answer

Practitioners must not advise beyond their competence; researching or referring to a specialist is the required professional response.

(STEP) Society of Trust and Estate Practitioners Certification Practice Test

(STEP) Society of Trust and Estate Practitioners Certification Practice Test

STEP Client Advisory & Consultation 2