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Friday, April 12, 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 College of Legislation, Monique Hayes is named an skilled enterprise lawyer with the good thing about expertise in each personal and public observe. She additionally has a repute as a troublesome litigator.

As Hayes not too long ago informed 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 few of the most advanced issues concerned in enterprise possession transitions, legacy planning and household inheritance conflicts.

As we speak, Hayes facilities her observe on wealth preservation and safety — together with company restructuring, enterprise succession and property planning. She says a balanced strategy and an progressive mindset are important to success on this area, and he or she usually 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, develop and switch their companies. In a phrase, Hayes stated, the job is “inspiring.”

Within the latest 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 means.

See the accompanying slideshow for eight wealth planning insights:

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

Hayes began her authorized observe as a chapter lawyer.

“This gave me a front-row seat to learn the way people and households purchase wealth over time,” she recalled, “and the way they will lose wealth due to challenges of their enterprise or within the financial system.”

One clear takeaway from the work, Hayes stated, is that rising wealth can deliver households collectively or drive them aside. The latter final result is made extra seemingly when households don’t talk actually about what wealth means and the way it ought to movement via the generations.

“That problem performs out in numerous methods,” Hayes stated. “I simply bought 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 preventing in court docket. You’d be stunned how simple it may be for battle to come up if households don’t have a plan.”

2. Empowering ladies as wealth homeowners is important.

As Hayes famous, it is not uncommon 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 also be taking part in 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 verify 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 not too long ago, Ruth Gottesman. The philanthropic work of those and different luminaires has put a highlight on vital points, equivalent to supporting extra folks of colour within the medical discipline.

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 totally understood and agreed upon by all events concerned.

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

The worst outcomes — equivalent 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 it’s a must to take into consideration is the fact of the folks inside the household, and the folks inside the group that’s present process an possession transition,” Hayes stated. “As an advisor or lawyer, it’s a must to push your shopper and get them to assume actually in regards to the actuality of who can take over and run the corporate into the longer term.”

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