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High-net-worth individuals often have legal affairs involving several connected assets, family members and business interests. A property transaction may affect an estate plan, for example, while the sale of a business could prompt changes to a will, trust or Lasting Power of Attorney.

Working with experienced solicitors can help ensure these matters are considered together. Askews Solicitors advises individuals and families across Teesside and North Yorkshire on property transactions, wills, probate, trusts and related disputes.

What is a high-net-worth individual?

There is no single legal definition of a high-net-worth individual in England and Wales. The term is primarily used by banks, wealth managers and other professional advisers.

One commonly used definition comes from Capgemini, which classifies a high-net-worth individual as someone with at least US$1 million in investable assets. This excludes their main home, personal possessions and certain other assets.

Other organisations calculate wealth differently and may include property, pensions or business interests. In practice, high-net-worth individuals can include successful business owners, property investors, senior professionals, landowners and people who have inherited significant wealth.

Not everyone who meets a financial threshold will describe themselves as wealthy. However, the value and variety of their assets can create legal issues requiring careful planning.

How many high-net-worth individuals live in the North East?

There is no live public register of high-net-worth individuals, so any regional figure must be treated as an estimate.

A Resolution Foundation analysis of Office for National Statistics data indicated that approximately 60,000 adults in the North East lived in families with net wealth of more than £1 million per adult.

Legal services for high-net-worth individuals

High-net-worth individuals do not necessarily need a completely different category of legal service. They often require familiar services, but with additional complexity.

Their affairs may involve several properties, business interests, investment portfolios, trusts, valuable personal possessions and assets held jointly with relatives or business partners. They may also have children from previous relationships, dependants who require long-term support or family members living overseas.

Legal advice should take account of how these different interests interact. It may also need to be coordinated with advice from accountants, financial advisers and other professionals.

Conveyancing and property services for high-net-worth individuals

Property often represents a significant part of an individual’s wealth. High-net-worth clients may own a main residence alongside holiday homes, buy-to-let properties, commercial premises, development land or agricultural property.

Conveyancing can become more complicated where a transaction involves high-value property, several sources of funding, unusual title arrangements, restrictive covenants, rights of way or land intended for development. Additional work may also be required where property is being purchased through a company or trust, transferred between family members or acquired as part of a wider investment.

Solicitors can advise on the purchase and sale of residential property, buy-to-let investments, transfers of equity, land transactions and commercial property. They will also carry out the necessary identity and source-of-funds checks, which can require additional documentation where money has come from investments, company dividends, an inheritance or the sale of another asset.

For clients with several properties, legal advice can also help ensure that ownership arrangements remain consistent with their wider estate and succession plans.

Visit Property Services to learn how Askews can help progress property transactions.

Wills and estate planning for high-net-worth individuals

A professionally drafted will is particularly important where an estate contains substantial or varied assets.

A straightforward division of the estate may not reflect the individual’s family circumstances or long-term intentions. They may wish to preserve a business, provide for a spouse while protecting assets for children, leave different types of property to different beneficiaries or make provision for someone who cannot manage a large inheritance independently.

Estate planning can include reviewing how property is owned, choosing appropriate executors and considering how business interests, investments and valuable personal possessions should be dealt with. Tax consequences should also be considered with appropriate legal, financial and accountancy advice.

A will should not be viewed as a document that is prepared once and forgotten. It should be reviewed following events such as marriage, divorce, the birth of a child, a business sale, a substantial inheritance or a major property transaction.

Visit Wills & Estate Planning to learn how Askews can help individuals prepare for their family’s future.

Probate and the administration of valuable estates for high-net-worth individuals

Administering a high-value estate can involve considerably more work than obtaining a grant of probate and distributing money to beneficiaries.

Executors may need to identify and value multiple properties, investments, company shares, trusts, pensions and personal possessions. They must establish the deceased’s debts and liabilities, deal with any applicable tax reporting and ensure that assets are transferred or sold correctly.

Complexity can also arise where records are incomplete, assets are held jointly or executors and beneficiaries disagree about how the estate should be administered.

Receiving legal advice can help executors understand their responsibilities and reduce the risk of errors, unnecessary delay or personal liability.

If you require advice on probate and estate administration, visit Probate Services to learn how Askews can help.

Trusts for high-net-worth individuals

A trust is a legal arrangement through which trustees manage money, property or investments for one or more beneficiaries.

Trusts can be useful where someone wishes to retain a degree of control over how assets are managed or distributed. They may be used to support a child or vulnerable beneficiary, preserve assets for future generations, provide income or a right to occupy a property for a surviving partner or manage an inheritance until a beneficiary reaches a suitable age.

Different types of trusts have different legal and tax consequences. Creating a trust can also place continuing responsibilities on trustees, including record-keeping, administration and, in some circumstances, tax reporting.

A trust should therefore be created for a clear reason and only after its terms, costs and practical consequences have been properly considered. It should not be assumed that placing assets in trust will automatically remove them from an estate or prevent tax from arising.

To learn more about setting up or amending a trust, visit Trusts.

Disputes involving estates, trusts and property for high-net-worth individuals

The greater the value and complexity of an estate, trust or property portfolio, the more serious the consequences of a dispute can become.

Probate disputes may concern the validity or interpretation of a will, allegations of undue influence, questions about the deceased’s mental capacity or claims that reasonable financial provision was not made for a family member or dependant. Disagreements can also arise over the conduct of executors or trustees, delays in administering an estate and the valuation or proposed sale of significant assets.

Property disputes can involve ownership, boundaries, rights of way, restrictive covenants or agreements between co-owners.

Early legal advice can help clarify the parties’ rights and identify whether the matter can be resolved through correspondence, negotiation or mediation. Where court proceedings become necessary, having clear advice from the outset can help protect valuable assets and avoid preventable mistakes.

Visit Probate Disputes to learn how Askews can help resolve disputes.

High-net-worth solicitors in Teesside and North Yorkshire

High-net-worth legal advice should be practical, discreet and tailored to the individual’s circumstances. It should also recognise that property, family, business and estate planning decisions rarely exist in isolation.

Askews Solicitors has offices in Middlesbrough and Redcar and advises clients across Teesside, North Yorkshire and throughout the North East. Our solicitors can assist with conveyancing, commercial property, wills, probate, trusts, Lasting Powers of Attorney, probate disputes and more.

If you would like to discuss your legal affairs with an experienced solicitor, Contact Us to make an enquiry.

This article is for general information only and does not constitute legal advice.