In a nutshell

You have money. You need to know how best to control it, preserve it and pass it on: enter the private client lawyer. Solicitors advise individuals, families and trusts on wealth management. Some offer additional matrimonial and small-scale commercial assistance; others focus exclusively on highly specialised tax and trusts issues, or wills and probate.

Charities lawyers advise on all aspects of not-for-profit organisations’ activities. These specialists need exactly the same skills and knowledge as private client lawyers, but must also have the same kind of commercial knowledge as corporate lawyers.

Private client lawyers   

• Draft wills in consultation with clients and expedite their implementation after death. Probate involves the appointment of an executor and the settling of an estate. Organising a house clearance or even a funeral is not beyond the scope of a lawyer’s duties.
• Advise clients on the most tax-efficient and appropriate structure for holding money and assets. Lawyers must ensure their clients understand the foreign law implications of trusts held in offshore jurisdictions.
• Advise overseas clients interested in investing in the UK, and banks whose overseas clients have UK interests.
• Assist clients with the very specific licensing, sales arrangement and tax planning issues related to ownership of heritage chattels (individual items or collections of cultural value or significance). Bring or defend litigation in relation to disputed legacies.

Charities lawyers  

• Advise charities on registration, reorganisation, regulatory compliance and the implications of new legislation.
• Offer specialist trusts and investment advice.
• Advise on quasi-corporate and mainstream commercial matters; negotiate and draft contracts for sponsorship and the development of trading subsidiaries; manage property issues and handle IP concerns.
• Charities law still conjures up images of sleepy local fundraising efforts or, alternatively, working on a trendy project for wealthy benefactors. The wide middle ground can incorporate working with a local authority, a local library and schools to establish an after-school homework programme, or rewriting the constitution of a 300-year-old church school to admit female pupils. Widespread international trust in British charity law means that you could also establish a study programme in Britain for a US university, or negotiate the formation of a zebra conservation charity in Tanzania.

The realities of the job

• An interest in other people’s affairs is going to help. A capacity for empathy coupled with impartiality and absolute discretion are the hallmarks of a good private client lawyer. You’ll need to be able to relate to and earn the trust of your many varied clients.
• Despite not being as chaotic as other fields, the technical demands of private client work can be exacting and an academic streak goes a long way.
• The stereotype of the typical ‘country gent’ client is far from accurate: lottery wins, personal injury payouts, property portfolios, massive City salaries and successful businesses all feed the demand for legal advice.
• If you are wavering between private clients and commercial clients, charities law might offer a good balance.

Current issues

• Private client work has become more popular in the City during the recession, as a way of making up for losses from the decrease in the amount of corporate work available and taking advantage of the fact that private investors have been filling the void left by diminished corporate funds.
• The private client world is becoming increasingly internationalised. Wealthy people are selecting a wider geographical spread of assets, and London has become a hub for the management of these assets. Many clients come from Russia, the Middle East, the USA, India and France. The Finance Act 2008, which applies strict and complex tax rules to non-UK domiciliaries (‘non-doms’), combined with the newly introduced 50% income tax rate, caused some high net worth individuals to consider leaving the UK. Those who’ve opted to stay have sought advice on restructuring their wealth. The tax rate may well drop to 45% in the near future, but either way the UK is still an attractive destination for foreign domiciled individuals to move to, and those wishing to do so have provided a steady flow of work.
• 2009 saw further pressure being applied to offshore financial centres in an attempt to obtain greater transparency as to the ownership and taxation of funds held there. This resulted in many enquiries about the implications of the rapidly expanding network of international tax information exchange agreements and the consequences for those compliant individuals and families who legitimately wished to maintain their privacy. In addition, 2009 also saw greater efforts by the governments of western economies to facilitate the return of funds to their domestic economies by offering amnesties for the return of undeclared funds.
• More firms have dedicated teams handling legacy disputes. The RSPCA, for example, has been actively involved in these types of claim.
• After an interminably long wait, the Charities Act 2006 was finalised. The Act addresses fundamental questions about what constitutes a charity and what ‘public benefit’ means. It also provides for greater regulation in some areas, and greater freedom for charities in others.
• Economic uncertainty has brought many challenges for charities, particularly the large ones that rely heavily on public donations and/or government funding. Some charities have seen their budgets cut by up to 40% as a result of a reduction in corporate donations. As a result, many charities are restructuring or becoming more innovative with fundraising, while others look towards collaborative working with other charities.
• There’s been an upswing in charities mergers. The 2002 merger of Cancer Research and Macmillan proved it to be possible, and in 2008 there were just under 500 mergers registered with Charity Commission. One of the most publicised combinations was that of Age Concern and Help the Aged, to form Age UK.
• Other matters concerning charities are conflicts of interests, ‘whistle blowing’ and information management. A theme running through these areas is getting governance right – something that tends to come into focus in harder economic times. Economic difficulties aside, there are nearly 300,000 British millionaires donating 5% of their wealth, making the UK the second-largest charitable donor in the world.
• There is speculation that David Cameron’s ‘Big Society’ will leave charities bidding for services previously provided by the public sector, and that these will become a source of extra funding. As a result, there will be competition between the private and public sectors for contracts.
• The government is introducing measures to increase legacy giving, as part of its 'Big Society' agenda. These include a 10% inheritance tax break for those who donate at least 10% of their estate to charity, improving the way donors are thanked, and simplifying donation rules.
• Loss of exempt charity status has affected numerous organisations – schools, religious institutions and museums, among others. The introduction of Alternative Business Structures may harm the revenue streams of smaller firms working on will drafting and probate. Some may not survive the increased competition while others may merge forming a united front against the challenge of ‘Tesco Law’.
• In the 2011 budget, the coalition government doubled the lifetime allowance for entrepreneurs’ relief to £10m. It was just £2m in 2009.
• Firms right across the country bemoan a dearth of young lawyers who can claim to be true private client specialists. It looks like a good time to put your hand up and be counted.

Read our True Pictures on:

- These firms for private client work

- These firms for charities work