Team size: 11

Looking forward, what technological advancements do you feel will impact the role of in-house legal teams in the future the most?

Technological advancements in the ability to protect data will make it easier and more efficient for in-house legal teams to obtain and share information globally. This is especially critical as in-house legal teams are now handling tax and other compliance – all complex in nature – worldwide.

What would you say are the unique qualities required to be successful as an in-house lawyer in your industry?

The in-house lawyer of a family office with high-net-worth clients must have the ability to combine legal expertise with practical advice. In addition, the in-house lawyer of a family office, unlike a specialist in a law firm, must be able to identify and trouble shoot legal issues that span all disciplines and multiple jurisdictions. Finally, sensitivity to complex family relationships, and patience and discretion is a must.

What can law firms do to improve their service to the legal department?

Law firms that service our office must understand that the clients trust and rely on the family office to serve as their liaison for all matters. In addition, the law firms should be able to provide timely responses and have a good understanding of the broader multi-jurisdictional and multi-disciplinary issues that our clients face.

Focus on: The role of general counsel of family office in an age of multiple tax residencies

The general counsel of a family office of high-net-worth clients – many of whom often have connections to several tax jurisdictions – must make sure that the clients are in full compliance with all tax reporting and tax obligations that apply globally. Tax inefficiencies for the clients can be created if there is not proper planning.

In the new era of telecommuting and the relative ease of air travel, the world is wide open for many clients. The tax laws of different countries have not always kept up with this new reality of the mobile citizen. Of course, the various tax jurisdictions are each looking for a bigger piece of the pie. Finally, tax treaties – some many decades old – do not address all aspects of this new way of living. This can result in different countries (and even states of different countries) making conflicting claims to the right to tax an individual or an entity.

The general counsel of a family office must be knowledgeable in the tax laws of the relevant jurisdictions. But this is just the starting point of the general counsel’s role. The general counsel must make sure that the proper reporting is done in each relevant jurisdiction. And most importantly, that proper records and documents are kept to affirm the client’s tax position.

In the future, tax laws and tax treaties will hopefully be updated and revised to reflect the new reality of modern living. And perhaps, the countries of the world one day will become collaborators, not competitors, working together to figure out how to split the pie. In the meantime, the general counsel’s role in this area is very much in demand and a value add to the clients.