What Is a Trusted Advisor?

 

A trusted advisor is a company or individual that acts as a strategic partner to their clients, working collaboratively and harnessing their experience and knowledge to provide bespoke advice and guidance. Advisors can be considered ‘trusted’ where they have long-term industry-specific skills and knowledge, strong and long-standing professional relationships, and a track record of furthering the interests of the companies or individuals they advise.

Trusted advisors can help their clients to thrive by providing insight from an agnostic and external perspective, identifying both obstacles and solutions to guide them towards future success and growth.

The Role of a Trusted Advisor

Trusted advisors don’t just carry out their clients’ instructions; they also advise on the best way to implement these instructions, as well as the potential ethical issues and pitfalls that could arise, informed by their professional judgement and practical experience. They also support and encourage their clients when it comes to making difficult decisions.

Given that a client may not have any relevant first-hand experience to help them decide on a course of action, a trusted advisor can be crucial in raising possible unintended consequences of which the client may not be aware.

When Do You Need a Trusted Advisor?

Experts in this sector – such as attorney-at-law Edgar Paltzer, who provides coaching in legal matters – know that there are several scenarios in which people and organisations may wish to consider engaging a trusted advisor. These scenarios include difficult negotiations, unexpected obstacles and a crisis events. Trusted advisors can also be vital in helping to prepare for the future, providing support, guidance and insights regarding emerging risks such as new technologies and increasing regulatory scrutiny.

A Changing Landscape

There has been a significant shift in the concept of what constitutes a trusted advisor within the legal sector in recent years. Today, it’s not unusual for a trusted advisor relationship to exist between a client and a law professional who isn’t a lawyer, as well as between lawyers and clients in areas not traditionally advised upon by lawyers. With this trend becoming increasingly prevalent, leaders in the sector need to ensure that only people with the right skills are empowered to serve as trusted advisors, allowing them to act in their clients’ best interests.

Take a look at the embedded PDF for more information about trusted advisors.

What Are the Benefits of Being a Trusted Advisor Within an Organisation

Testamentary Capacity: The Basics

 

The legal term ‘testamentary capacity’ refers to an individual’s mental and legal ability to make or alter a valid will. Without testamentary capacity at the time a will is executed, it is invalid.

How is Testamentary Capacity Tested?

In most jurisdictions, the test for testamentary capacity required to execute a will is based in case law. The person making or changing their will (the testator) must understand what making a will is and what it entails; they must also understand the extent of the property they are disposing of.

The testator should also be able to appreciate and understand the claims to which their will should give effect, and they should possess no disorder of the mind that could distort their sense of right or inhibit the exercise of their natural faculties regarding the disposal of their property by their will.

Proving Testamentary Capacity

Sometimes, a will may be contested on the grounds that the individual executing it lacked testamentary capacity. This usually happens posthumously, often when a will has entered probate and an aggrieved heir contests it. Where this is the case, the person making the contestation is typically required to prove that the decedent was mentally unsound, causing them to be unable to recall family members or hold insane delusions regarding them.

To resolve such cases, a forensic psychologist or forensic psychiatrist may be called upon to evaluate the decedent’s testamentary capacity by reviewing relevant emails and letters, medical records, and videotape of the will being drafted. Signs of undue influence may also be checked for.

Even if testamentary capacity is found to be lacking, courts may rule that the testator experienced a lucid moment or temporary period of lucidity at the point the will was executed.

The Role of the Doctor

Inheritance and succession planning experts – such as attorney-at-law Edgar Paltzer – know that while countries around the world differ in how they deal with testamentary capacity, in many jurisdictions they follow a ‘golden rule’ whereby a medical practitioner is involved in the process when an elderly person, or an individual who has suffered a serious medical illness, is making or altering a will.

However, in some jurisdictions the solicitor drafting the will assumes responsibility for ensuring the testator has capacity. Solicitors should seek advice from a medical professional if they are unsure about testamentary capacity.

For more information about testamentary capacity, take a look at the embedded PDF.

Testamentary Capacity

 

Estate Planning: Essential Documents Checklist

Estate planning can be a complex procedure involving lots of documentation, much of which needs to be presented in a specific way if it is to be considered legal. While the key component of estate planning is the writing of a will to distribute assets, it may also involve other aspects such as mandate in case of incapacity should the estate planner become incapacitated.

Dr Edgar Paltzer counts estate planning among his areas of specialism as part of his attorney-at-law practice. Getting legal advice helps to ensure that your wishes in your completed estate plan will be carried out after you pass away.

Last Will and Testament

One of the most important documents in any estate plan is a last will and testament. This is the legal document outlining your wishes as to how your assets will be distributed following your death. A will may also detail wishes for other concerns, such as who will raise dependent children. Within a will is named an executor, who will be the person responsible for ensuring all the wishes detailed within this document are carried out.

Mandate In Case of Incapacity

Another highly important document is a mandate in case of incapacity. This establishes who you would like to make decisions on your behalf should you become unable to do so for any reason, such as ill-health. If you do not have a mandate in case of incapacity and a court finds you incapable of making decisions, the court will make them for you.

Medical Directives

There are three main types of medical directives: a living will, a mandate in case of incapacity, and a do-not-resuscitate order. Each of these provides instructions to healthcare providers as to your wishes should a medical emergency leave you unable to voice those wishes yourself.

Guardianship Designations

If you have dependent children, you will want to ensure they are cared for should you pass away. While this can be and often is covered in a will, you may want to create guardianship designations separately if it is not covered. Without this, a court may decree the children become wards of the state or determine they live with a family member who may not share your values.

Letter of Intent

A letter of intent is a separate document for the executor of the will or a beneficiary. Letters of intent are not usually legally binding, but they let the executor or beneficiary know exactly what your wishes are regarding the use or disposal of specific assets.

Legal Terms Explained

 

Legal Terms Explained: What Is Legal Counsel?

A legal counsellor is essentially a type of lawyer who deals specifically with the provision of advisory services. Most people would choose to seek legal counsel for issues such as negotiations or relatively non-complex disputes that do not require a court appearance. Many legal counsellors are also referred to as lawyers but there are one or two key areas of difference.

Lawyers Vs. Legal Counsellors

The primary difference between a lawyer and a legal counsellor is that legal counsellors are salaried employees. Lawyers of varying specialisations may be employed, or they may work as an advocate independently or have their own law firm.

Lawyers are typically paid based on the number of hours they work for each client and what the outcome of each case is. Legal counsellors may receive bonuses or incentives for generating successful outcomes for clients, but their main source of income is a set salary paid each month.

Corporate Counsel

Many large businesses choose to employ their own in-house legal counsel to help them navigate any areas of business that may require legal advice, interpretation or protection. A corporate counsel works directly and solely for a specific company, providing legal services and protection to that company and its employees.

While other forms of legal counsellors may work for a large variety of clients through the legal firm they are employed by, corporate counsellors are employed by one company alone. Their work could include legal research, compliance with government regulations, insight on contracts, patents, collective bargaining agreements, property law and the settling of disputes.

Dr Edgar Paltzer is an attorney-at-law who includes tactical and strategic negotiation support in disputes among his areas of professional expertise.

The Benefits of Legal Counsel for Companies

Legal counsellors are typically versed in a huge variety of areas of the law and specifically all those pertaining to the operation of a business. It can therefore be hugely beneficial to companies to have their own in-house legal counsel on hand.

Most lawyers tend to have unique and specific areas of specialisation, which means businesses could end up seeking the services of several different lawyers to deal with different issues. An in-house legal counsel can cover a broad spectrum of issues, often saving the company time and money.

Family Business: A Brief Guide to Succession Planning

Family business succession planning can be defined as the process by which a business owner plans to transition management and ownership of their company after retirement. In a family business, this can often be a complex process, as family dynamics and personal relationships must be factored in. Family business owners may wish to consult a variety of professionals to ensure their succession planning results in a smooth transition. These may include accountants and financial planners, banks, insurance advisers and lawyers. Dr Edgar Paltzer is a lawyer who counts succession planning among his areas of legal expertise and is experienced in assisting family business owners to make the right decisions for themselves, their company, their employees, and their families. 

Aligning Strategies  One helpful process business owners can explore is aligning the strategies of their business and their family. This includes looking at whether the business could survive sudden disability or death of the current owner, how well positioned the business is for long-term viability, and whether the strategic plan of the company currently supports the values and vision of the family.  

Preparing for Succession 

Preparing for succession requires making a decision as to which family member, family members, or non-family employees will take ownership of the business following retirement and what their roles will be. This includes looking at what steps need to be taken to prepare them for their new responsibilities. Planning ahead is essential – if someone is being primed to eventually take over the company, they will be better prepared if they have already spent several years working their way up through the ranks, rather than suddenly being placed in charge.   

Conflict and Communication 

One of the trickiest aspects of many family business successions is the potential for conflict. Decisions will need to be made in the best interests of the future of the business, but this could conflict with the wishes and expectations of certain family members. One of the best ways to address this is with open and honest communication from the earliest possible stage. Involving family members in decision-making throughout the lifecycle of business ownership can help to give them a clearer picture of why certain decisions are being made and how they  have been arrived at. This can also help to generate more trust in the current leadership of the business, as well as reducing the chances of conflict further down the line.

Family Arbitration for Dispute Resolution

 

Family arbitration is a method of dispute resolution most commonly used at the breakdown of a familial relationship, such as a divorce or separation. It can be used to help resolve disputes over finances, property rights, and child custody and access.

Using the services of a family arbitrator is less formal than taking matters to court and can help get matters resolved more quickly.

Attorney-at-law Dr Edgar Paltzer counts family arbitration among his areas of specialist legal expertise.

Benefits of Choosing Arbitration

The key benefits to choosing arbitration over court proceedings include a faster resolution in most cases. The process is usually more flexible and the involved parties can choose who they wish to be their arbitrator, whereas in court they would not be able to choose which judge was allocated to the case.

It is also a more informal process than going to court and can often be more affordable. Both parties have the option to appear as a litigant in person, or appoint a lawyer to act on their behalf throughout the arbitration proceedings.

When to Choose Arbitration

Arbitration can be a good choice in cases where there are disagreements over how property and assets should be divided or how childcare and support should work. However, there are some circumstances in which choosing to go to court would be the better option.

These include cases where one party believes the other may be trying to hide assets, or where evidence from third parties would be required to resolve specific disputes. In these cases, full legal proceedings will be more likely to get to the bottom of the dispute.

Arbitration Vs. Mediation

Many people think arbitration is the same as mediation. This is not the case. Although both systems involve a neutral third party helping to reach a decision, the key difference is that the findings of an arbitrator are binding, unless it can be proven that the arbitrator has not followed the letter of the law.

A mediator hears both sides of a dispute and talks things through with both parties to try and help them reach a resolution by themselves. However, if at the end of mediation one or both parties do not agree with what the mediator says, they have the option to explore other paths of dispute resolution.

Once arbitration proceedings have been approved, the decision of the arbitrator is just as binding as that of a judge in court.

Advice on Drawing Up a Succession Plan for a Family Business

 

Operating a family business creates unique opportunities to help children get ahead in life once they reach adulthood. With a family business, there will almost always be a job available for close relatives.

However, issues relating to succession planning are not always as simple. Not all children want to enter the family business, much less take over when their parents retire. Those that do may not be suitable for the role or require many years of training and experience before they will be ready.

The current generation may not have concrete plans for how they wish the business to progress once they step down, while the next generation often have their own ideas about where things should be heading. Putting a business succession plan into place at an early stage can help avoid complications down the line.

A succession plan does not have to be a binding document but having strategies in place can help plan for the future of a business. Succession planning for family establishments is one of the preferred areas of practice of Dr Edgar Paltzer, attorney-at-law. Dr Paltzer is based in Switzerland and has been practicing law since 1981.

Family Meetings

The more succession plans are discussed in advance, the better prepared successors are when the time comes to take the reins. Regular family meetings not only help to ensure that everyone has the relevant information and can access any training required; they can also help business-owning families to connect with each other on many levels.

Family meetings can be comprised of multiple facets, some of which are business-oriented and others of which are more about bonding. A committee of family members helps to ensure all voices are heard and all pertinent issues can be addressed at each meeting, leaving all attendees satisfied with the results.

Defining Roles

Throughout the lifecycle of any family business, it is important for everyone involved to have clearly defined roles and responsibilities. By putting these in place during their time at the helm, family business owners can reduce the likelihood of conflict or misunderstandings further down the line.

Each family member should be full appraised of their future prospects regarding the business at the earliest possible stage. Some may be expected to take on prominent leadership roles; others may be future or current board members; others may be shareholders but take a backseat in terms of decision-making.

Developing Key Skills

Education plays a key role in preparing younger family members for the future. Whether children or other younger relatives have a future within the family business or not, most parents will find that providing their children with a solid grounding in how the business operates will prove valuable to those children as they embark on their adult careers.

Parents want their children to be financially secure and prepared for all the responsibilities that come with being an adult. Structuring a comprehensive education plan that accounts for each member of the family from a young age – and ensures everyone understands not only the family business but the business world in general – can be a great first step in protecting a child’s future.

Linking Succession to Strategy

A good succession plan factors in both the strategies of the business and the needs of the family members involved. Different people have different talents and objectives for the future. Tying the company to those relatives whose personal objectives match the strategy of the business going forward has the most chance of success.