1972, April, Pg. 15. Lawyer-Trustman Relations.

• Author: Christian K. Johnson

1 Colo.Law. 15

Colorado Lawyer

1972.

1972, April, Pg. 15.

Lawyer-Trustman Relations

151972, April, Pg. 15Lawyer-Trustman RelationsChristian K. JohnsonChristian K. Johnson is vice president and trust officer and head of the Trust Division of The American National Bank of Denver. He is a member of the Denver, Colorado and American Bar Associations, and is currently Chairman of the Statutory Revisions Committee of the Probate and Trust Law Section of the Colorado Bar Association. In addition, he is vice chairman of the Denver Trust Officers Association, but the opinions expressed in this article are his own and not necessarily those of other members of that body.Trust-Bar relations have been the subject of concern and appraisal for many years, and there have been several court decisions dealing with the conflicts between bar associations and trust institutions. In most instances, however, and particularly in Colorado, a good relationship has existed between lawyers and bankers. My purpose here is to discuss the positive aspects of cooperation between the two of us, both to ourselves and to the public we serve.

Last September, Denver attorney Hover Lentz participated on the program of the Western Trust Conference with an excellent summary of how he, as a practicing attorney, looks at a trust department. My objective is not to respond to his comments in rebuttal, but to join him in suggesting ways in which our relations may be improved to the benefit of all. I would hope that we could basically agree on many methods of approach.

Lawyers often point out that if a doctor, a reporter and a mechanic all witness the same accident, each will immediately direct his attention to those things which are closest to his usual thoughts. The doctor will first wonder about the nature and extent of bodily injury, the reporter will be mentally writing his story and the garage mechanic will first think in terms of damage to the car. The same is true to some extent in the estate planning field, as we all tend to look at life through the eyes of our own specialty. I approach you not only as a trustman, but as a trustman who believes strongly in the value of our services to our customers.

Background and FunctionsHistorically, all fiduciary matters were in the exclusive province of the bar. Also, the primary assets of estates were land and chattels. With the advent of our modern corporate systems of business and the imposition of almost confiscatory death taxes, the problems of estate settlement and trust administration became important

16to those of moderate wealth as well as to the more fortunate. Complexities of business management, investment of assets and tax considerations demanded experienced and competent fiduciaries who would provide specialized and professional service. Modern trust business was born, and it has grown to fantastic proportions.

The primary duties of the trust officer are the administration of trusts and estates, the investment of the funds therein, and, most importantly, the prudent and sensible exercise of discretion in both administration and investments. We must be familiar with the laws relating to the duties of a fiduciary, taxation, investments, and many other areas which are essential to the proper performance of our functions. We often become the lay advisor of our beneficiaries, and are involved in many diverse business and financial aspects of planning and administration. We become experienced in the practical decisions we make in solving problems of varying nature and complexity.

The lawyer is the legal advisor of his client and of our customer. By law, he is the confidential advisor of his client, and no court can force him to divulge his client's confidences without his client's consent. The same is not true of the relationship between a trust officer and his customer. Of all the estate planning specialists, the lawyer is the only one who, by law, must conduct his relationships on a...