The new era of collaborative private client practice

In today’s increasingly complex legal and regulatory environment, where family dynamics and individual priorities are more nuanced than ever, the most effective private client solutions are borne from seamless collaboration. 

It has been reported that over the next two to three decades, the UK will see a 'great wealth transfer' of over £5.5 trillion from baby boomers to their children and grandchildren. In part, this reflects an ongoing cost-of-living crisis in the UK and the high cost of property, which places more importance on the so-called ‘bank of mum and dad’ and on inheritance for younger generations.

Added to this picture, there has been the effect of sweeping inheritance tax reforms announced in Autumn 2024, and due to take effect over the next two tax years. These reforms will significantly broaden the reach of inheritance tax.

Using previously unseen government data, a recent Irwin Mitchell report predicted that by 2027, the number of estates liable for inheritance tax will rise by 50% and that 9 out of 10 UK postcodes across the UK will see more estates subject to inheritance tax compared to five years ago.

Seamless collaboration and its importance

The inheritance tax reforms in the pipeline are already leading to a significant behavioral shift with business owners and farmers having an imperative to make significant gifts now and sweeping changes in the approach to pension savings. Those who had been planning to hold onto pension savings to pass on to the next generation free of inheritance tax, are contemplating drawing down on their funds to spend or give away, ahead of unspent pension savings being brought within the scope of inheritance tax for those who die on or after 6^th April 2027.

This means we are entering a new era of estate planning with an unprecedented level of lifetime gifting underway. The risk is that pressures to pass on wealth, sooner rather than later, to mitigate inheritance tax exposures may lead to hasty decisions without fully rounded advice or sometimes absent any advice at all! 

While tax is a key driver, it should not be the only factor determining the way forward. Acting hastily may trigger other unintended consequences, such as capital gains tax, significantly diminished asset protection, and risk of future family disharmony. There needs to be careful evaluation of such exposures and a considered review of the best route to achieving the client’s aims in a way that is sensible and proportionate to the problem. Ensuring clients make well-informed choices must involve a multi-disciplinary approach and arguably should be communicated to the entire family or those who will be affected. From a private client perspective this will often include private client advisory services, tax, family law, and estate dispute resolution perspectives, as well as close collaboration with our corporate colleagues.

The role of family lawyers in private client work

‘The Irwin Mitchell review’ concluded that firms positioning services which involve distinct legal disciplines under a unified private client offering are increasingly seen as trusted advisers, not just technical experts. This can be key to differentiation in a crowded legal market. It is not just about better outcomes - it is also about building trust and long-term relationships. 

‘Private Client’ is often still defined mainly by reference to wills, trusts, probate, and related inheritance tax planning. Operating in a private client “silo” misses key opportunities for inter-generational wealth planning and protection including cohabitation agreements, pre- and post-nuptial agreements and trust structures and there are significant benefits for clients by bringing together a multi-disciplinary private client team to include family law. 

The ‘Great Wealth Transfer’ means that wealth protection tools and their operation within the context of family law are taking on greater importance. There has been a noticeable and continuing shift in public perception of the use of nuptial agreements both by parties to a marriage or imposed by family members as part of generational wealth-planning. There is increasing awareness that such agreements can be an effective way of specifically protecting family gifts and inherited wealth (rather than being the unromantic preserve of the ultra-wealthy planning for the financial fallout of the marriage failing). 

The 2010 Supreme Court decision in Radmacher v Granatino [2010] UKSC 42 set the tone for how family judges will treat prenups, meaning that the courts should uphold nuptial agreements ‘freely entered into’ by both parties with a ‘full appreciation of its implications’, unless it would be unfair to do so. Essentially, this means that provided both parties understand what is being agreed, neither has been put under pressure and the agreement is not unfair, the terms of the agreement ought to be upheld. 

The Law Commission has recently indicated support for the introduction of binding nuptial agreements to provide greater clarity and certainty for couples in the process of a divorce or dissolution (and taking significant pressure off family law courts which are under incredible strain, resulting in long delays for couples who are resolving their financial disputes through the court system). 

More recently in Standish v Standish [2025] UKSC 26 - Google Search the Court affirmed that the sharing principle on divorce only applies to matrimonial property and transfers between spouses do not automatically “matrimonialise” non-matrimonial assets. The source and intention behind the transfer of assets is crucial and for private client lawyers this case underscores the importance of clear documentation to record intentions when undertaking wealth planning and the need to implement and carry out planning steps properly. For family lawyers this case reinforces the need for pre- and post-nuptial agreements and highlights the vital role of joined up, early advice to anticipate and mitigate future litigation risk.

Risks that are heightened in the absence of a joined-up approach

Involving experts across relevant disciplines and diligently documenting related discussions and the rationale behind the decisions made can all help to reduce the risk of a costly dispute in future, particularly in cases of relationship breakdown or inheritance claims involving children, stepchildren, and new partners. 

Where assets are being passed on whether in lifetime or on death, estate disputes will inevitably follow in some cases. This is often a product of complex family structures and an increasing awareness of the grounds for challenging the position. 

Challenges to the disposition of an estate based on the capacity of the testator or donor are likely to rise further with the number of people living with dementia close to 1m and predicted to rise to 1.4m by 2040.

With increased longevity, concerns about coercion or fraud are rising. Undue influence often occurs behind closed doors, leaving little evidence. In view of this, the Law Commission has proposed statutory reform via a new Wills Act, shifting the burden of proof to those accused of exerting undue influence where there are reasonable grounds for suspicion. 

A coaching approach from the outset with all potentially affected parties being made aware of plans is the obvious way to avoid disputes and mitigate the risk of a dispute; so too considering the inclusion of conditional dispositions and other mechanisms which will deter potential challenges. 

Advice regarding wealth planning issues in isolation risks conflicting strategies between tax, trust, and estate planning as well as wider wealth protection within the family. 

Advisers must balance the need for prompt advice in the face of the forthcoming inheritance tax rule changes and the surge of gifting this is prompting, with caution and care.

Individuals must ensure they retain sufficient to meet their own lifetime needs. Legal, tax, and financial planning should be integrated and begin with valuation appraisals, ideally coupled with a cash flow forecasting exercise to support and evidence informed choices being made about the extent of gifts.

There is an overarching onus on professional advisers to ensure that gifting is a well-considered, informed choice, freely made and with full understanding of the tax and wider implications (including the risks that flow from present uncertainty about what final form the legislation will take and potential further tax rule changes). 

Barriers to seamless collaboration

Despite the clear benefits, a truly collaborative approach has long been elusive for traditional law firms.   

The issue is not new, and neither is the strength of the case for the benefits of closer collaboration:  As Harvard Law School’s Center on the Legal Profession identified back in 2015 in their report on collaboration in law firms: 

“The growing complexity of legal work—work that is increasingly cross-practice and multijurisdictional in nature—requires lawyers to collaborate across expertise and organizational boundaries. Data shows that when lawyers do work across specialties, their firms earn higher margins, clients are more loyal, and individual lawyers are able to charge more for the work that they do. By deemphasizing input measures, such as billable hours, and focusing more on output variables, like breadth of service per client (known in some firms as “proliferation”), firms can lower the barriers to collaboration and land higher-value work.” 

The report identified the two key barriers to closer collaboration as being: structural and cultural (which will come as a surprise to no one in the industry). Structurally, departments may operate with separate billing codes, targets, and reporting lines, effectively discouraging shared work. Culturally, lawyers may fear losing control over client relationships or being perceived as less productive if they spend time on collaborative efforts.   

Practical steps

There is no one solution but an obvious starting point to fostering and nurturing collaborative behaviours across legal services is to start with the needs of the client – what services do clients need, which team provides that service and identify the overlap.

• Integrated Client Onboarding can flag when a client’s needs span multiple disciplines. This allows for early collaboration and avoids duplication.
• Shared knowledge platforms can highlight cross-functional skill sets.
• Joint events and training are instrumental in showcasing the interplay between tax, family law, and business structuring (to clients and professional connections as well as fostering closer working relationships internally).
• Cultural Leadership: Senior lawyers must model collaborative behaviour. As the Harvard research concluded, ‘rainmakers’ who involve colleagues in client work see long-term growth in terms of their own practice as well as for the wider benefit of the firm. Harvard Study: Law Firm Collaboration Pays Off

A call to action

As private client solicitors, we stand at the intersection of law, legacy, and human experience. The challenges our clients face are rarely confined to a single discipline; their lives are woven from threads of family, finance, business, and future planning. Now is the time to champion a new era of collaboration—one where we break down barriers between practice areas and work together to deliver truly holistic, life-changing advice.

Let us lead by example, forging partnerships across our firms and beyond, so that every client benefits from the full breadth of our collective expertise. As we embrace this collaborative approach, we not only enhance outcomes for families but also elevate the standing of our profession.

As Helen Keller once said, “Alone we can do so little; together we can do so much.” Let’s seize this opportunity to set a new standard—where joined-up thinking and teamwork are the hallmarks of exceptional private client practice. The future of private client services is ours to shape. Let’s do it—together.