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Sunday, March 10, 2024

8 Wealth Planning Insights From a Enterprise and Property Lawyer

As a associate for DGIM Legislation and an adjunct professor for the College of Miami Faculty of Legislation, Monique Hayes is named an skilled enterprise legal professional with the good thing about expertise in each personal and public observe. She additionally has a popularity as a tricky litigator.

As Hayes just lately advised ThinkAdvisor, this background gives her with a broad understanding of the enterprise and financial panorama. She has been referred to as on by shoppers to deal with a number of the most advanced issues concerned in enterprise possession transitions, legacy planning and household inheritance conflicts.

In the present day, Hayes facilities her observe on wealth preservation and safety — together with company restructuring, enterprise succession and property planning. She says a balanced method and an modern mindset are important to success on this area, and she or he repeatedly gives results-driven counsel to principals, fiduciaries, and for-profit and non-profit companies concerned in business transactions, litigation and succession planning.

What Hayes enjoys most about her observe, she says, is “witnessing, and infrequently serving to, the American dream be realized.” Most of her shoppers are entrepreneurs, she defined, so she will use her abilities and experience to assist them to construct, restructure, increase and switch their companies. In a phrase, Hayes stated, the job is “inspiring.”

Within the current interview, Hayes spoke about how monetary advisors, attorneys, tax specialists and others can collaborate to assist their shoppers thrive — even when advanced planning challenges and deep questions in regards to the which means of wealth stand of their approach.

See the accompanying slideshow for eight wealth planning insights:

1. Wealth can carry households collectively and drive them aside.

Hayes began her authorized observe as a chapter lawyer.

“This gave me a front-row seat to find out how people and households purchase wealth over time,” she recalled, “and the way they’ll lose wealth because of challenges of their enterprise or within the financial system.”

One clear takeaway from the work, Hayes stated, is that rising wealth can carry households collectively or drive them aside. The latter consequence is made extra possible when households don’t talk truthfully about what wealth means and the way it ought to circulate by means of the generations.

“That problem performs out in several methods,” Hayes stated. “I simply acquired out of a litigation case that concerned a household dispute over the possession of a enterprise. We gained the litigation, however it’s nonetheless unlucky to see households combating in courtroom. You’d be stunned how straightforward it may be for battle to come up if households don’t have a plan.”

2. Empowering ladies as wealth house owners is crucial.

As Hayes famous, it’s common for wealth managers to debate the transition of wealth from child boomers to millennials and Gen Z, however the reality is that one other nice wealth switch can be enjoying out.

“Everyone knows the stats that present child boomer ladies live longer than their male spouses, so earlier than we’re seeing the transition of management of wealth throughout generations, we’re first seeing a transition of wealth throughout genders,” Hayes defined. “We’d like to ensure ladies are ready to inherit wealth and are empowered.”

Hayes stated she has been significantly impressed by the examples set by the likes of Melinda Gates, MacKenzie Scott and, most just lately, Ruth Gottesman. The philanthropic work of those and different luminaires has put a highlight on essential points, corresponding to supporting extra individuals of coloration within the medical subject.

3. Even tight-knit households want a plan for wealth transitions.

Requested in regards to the keys to profitable wealth transitions inside households, Hayes stated it’s important to create an actual plan — one that’s absolutely understood and agreed upon by all events concerned.

It would possible take time to set out the parameters and generate buy-in, she warned, so it’s additionally important to start out conversations early and let the plan transfer from the dialogue section to the documentation section naturally however deliberately.

The worst outcomes — corresponding to bitter litigation and household battle — typically end result from first-generation wealth creators burying their head within the sand and making no planning effort earlier than one thing like a well being episode or a loss of life forces an possession transition.

4. Hopes and expectations don’t make an actual transition plan.

“The opposite factor is that you need to take into consideration is the truth of the individuals inside the household, and the individuals inside the group that’s present process an possession transition,” Hayes stated. “As an advisor or legal professional, you need to push your shopper and get them to suppose truthfully in regards to the actuality of who can take over and run the corporate into the longer term.”

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