Top 5 Trends In Response To Covid-19 For Private Client

The Global Elite have spoken. These are the top trends that private client lawyers are dealing with since the COVID-19 pandemic took over our lives. Click on the below link to see the infographic.

InfographicTrends

EXISTING & NEW CLIENTELE

The majority of existing clients aren’t ready to focus on planning at the moment; their focus is on keeping themselves and their family safe. On the other hand, there is a surge of new clients making enquiries into wills. Almost two fifths of those aged 50 or more do not have a will in place, according to Co-op, the funeral planner, and risk leaving loved ones financially cut off after they die.

ESTATE PLANNING

With the current, but temporary, decline in asset class valuations, it is the perfect opportunity for encouraging the transfer of whole or in part assets and pay any potential capital gains tax on a smaller gain (or possibly no gain at all). It is also a great time to encourage clients to transfer assets in decline into trusts.

ENTREPRENEURS

Entrepreneurial clients are in crisis mode, only interested in saving their businesses. Funds are being sought through unconventional means such as non-bank lending or financing backed by physical assets like art or wine. The nimbleness of smaller private banks is potent in the current environment as it could enable faster approvals of external providers.

RETROSPECTIVE TRENDS

Senior private client lawyers are reflecting on the 2007-2008 financial crisis, to look for trends in areas where business picked up when assets were depressed, to know what will prove popular to clients in 2020.

FREEDOM OF MOVEMENT

Restrictions placed on the movement on clients is severely curtailing movement across the world. Issues include tax residency and status, POEM tests for trustee meetings and substance requirements of physical presence. Can they be replaced by tele/video conferencing? Looking forward, with future tax changes to be implemented to support the current bailouts, will movement change for UHNW to countries? Additionally, how countries have handled the crisis will be considered as clients age.