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I am also a little worried about liabilities. I don't know the family well, and I have some worries that if someone in the family thinks I have not done a good enough job they will sue me.
Bruce, you are absolutely correct, and that's reason enough not to do it. For income of $3,000 it's just not worth it, IMNSHO.

And for managing someone else's money for a fee, you might be required to register with the SEC as a Registered Investment Advisor. There's an exception for family members, but I don't recall the technical particulars about that. You don't say just how distant this relative is. That's another thing to review with your lawyer. And of course, get a written agreement to protect yourself. That's the first thing you should be doing with your lawyer.

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