A senior level legal recruiter's view of the market; identifying trends and areas of growth with insight into those issues which affect the legal arena.

For what is generally regarded as one of life’s essentials, the question of money can divide opinion like no other. For some it is ‘the root of all evil’; for others it is what makes the world go round.

 

Others will point out rightly that “you can’t take it with you”........can you?

 

Sorry to break it to you but no, of course you can’t. After you’ve taken your final breath it may pay for you to have a good send-off and perhaps fund a few beers at your wake, but whilst your dependents may thank you for bequeathing them a few quid, your assets will be of no use to you directly. So why then are so many firms committing their private client departments to moving away from wills & probate, and instead focussing on the question of protecting your money whilst you are still alive?

 

Well obviously it’s a good money earner. Being able to offer complex yet beneficial tax planning issues and utilisation of offshore trusts can be fairly lucrative, particularly as the market is not saturated with firms offering this service and hence the charge-out rate for this type of work is usually higher than mainstream private client work.

 

Secondly it allows your firm to differentiate yourselves from the crowd who may only offer a ‘standard’ wills & probate service. There is also a certain prestige factor, meaning that you can handle high net worth private client work without it harming your reputation as a top corporate practice.

 

At the moment the wealth protection aspect of private client law is very much in vogue. Many leading firms who previously turned their back on wills & probate work are now targeting this as both a profitable concern and also a useful way of retaining the business of high net worth business owners.

 

As the tax burden grows within the UK and with the use of pre-nuptial agreements carrying increasing weight when it comes to HNW separations, many business owners are looking at how they can protect their assets including cash, property, investment portfolios and even the IP rights of their company. Those firms who manage the individual wealth of their clients have the opportunity to then cross-sell their business law services to what should be an already satisfied customer.

 

Of course this is not always the case; some companies and practices already enjoy strong links which are unlikely to be altered by the MD opting to review his/her personal circumstances. Others prefer to keep their personal assets and business concerns separate and use different law firms for each. However there is that select clientele who will take the view that a firm which can effectively manage their own personal wealth can also do something similar for their business concerns, and in this area the wealth protection team can really come to the fore.

 

As anyone who has worked within the law or legal recruitment for some time will know there have been various ‘fad’ or ‘flash in the pan’ niches where super-profits are envisaged yet which have failed to live up to the hype. Similarly where those areas have proven to be successful the clamour for specialists to service it often outstrips the supply and it may be that firms targeting the wealth protection end of the market fall short with their ambitions to carve out a reputation in this field.

 

However there is no doubt that this type of work is appealing to a number of firms at the moment and this is only likely to increase over the coming months. Those firms who are able to handle work of this nature and who can really make a name within wealth protection will continue to see increased levels of instructions from HNW clients as more and more people see the potential benefits of ringfencing assets, with the opportunity to cross-sell corporate services as discussed earlier.

 

And why not look at this? If wealth protection does indeed continue to rise in popularity the way that ADR has done in the last 5 years then those firms who can provide an excellent level or service in this area can post healthy profits as a result.

 

Make hay while the sun shines. After all, you’re a long time dead.

 

 

 

 

 

Interested in moving into wealth protection work but lacking the expertise at present to do so? Or are you a wealth protection specialist seeking to discuss which firms have earmarked this as an area they are looking to recruit into? Contact one of our specialist consultants on 0121 233 5000/020 7649 9094