Prasad, who has spent years advising affluent individuals and families, explains that the rise of private wealth clients on Bay Street is driven by a generational transition. As baby boomers retire and transfer ownership of their businesses, many are shifting their focus from building wealth to managing and preserving it for future generations. This transition has created a surge in demand for legal expertise that goes beyond traditional corporate law, encompassing areas such as tax planning, estate structuring, and philanthropic strategies.
“Private wealth law is not just about tax optimization,” Prasad notes. “It’s about creating a comprehensive framework that addresses everything from corporate governance and family succession plans to cross-border asset management and charitable giving.” This multidisciplinary approach, she says, requires law firms to think holistically about their clients’ needs, often drawing on expertise from multiple practice areas to deliver seamless advice.
The shift toward private wealth management is particularly evident on Bay Street, where large law firms are increasingly recognizing the importance of building dedicated private client practices. These practices are designed to cater to the complex needs of high-net-worth individuals, who often have assets spread across jurisdictions and require sophisticated strategies to manage their wealth effectively. As Prasad points out, the ability to provide cross-border legal advice is becoming especially critical, as many Canadian clients hold assets in the U.S. or other international markets.
“Buying a vacation home in Florida might seem straightforward,” Prasad says, “but it can trigger a range of legal and tax implications, from U.S. estate tax exposure to compliance requirements. That’s where a tax-efficient structure becomes essential.” For firms like Cassels, which has a strong reputation for handling high-profile deals, the ability to offer this kind of specialized advice positions them as a go-to destination for private wealth clients.
One of the most significant changes Prasad has observed in her career is the growing emphasis on creating generational wealth. Thirty years ago, private wealth law was often focused on immediate tax savings and estate planning for individuals. Today, clients are increasingly focused on building lasting legacies that can benefit their families for decades to come. This shift has made it essential for lawyers to think long-term, helping clients establish structures that ensure the longevity of their wealth and the continuity of their family businesses.
“It’s about more than just preserving wealth,” Prasad says. “It’s about creating a roadmap for the future, whether that means ensuring a family business remains viable for the next generation or setting up charitable foundations that reflect a client’s values.” This forward-looking approach, she adds, requires a deep understanding of both the legal and emotional dynamics at play in family wealth management.
Prasad highlights that comprehensive legal services are essential for private wealth clients. Full-service law firms are better positioned to benefit from the rising demand because they can provide a broad range of services, including tax, trusts, corporate governance, and finance. This multidisciplinary approach is crucial for addressing the complex needs of high-net-worth individuals.
Many clients now hold assets in both Canada and the U.S., adding a cross-border legal dimension that includes international tax planning, compliance, and asset protection. For example, buying a vacation home in the U.S. is not as simple as it seems, as it creates a presence in the U.S. and opens the individual to the IRS. In such cases, a tax-efficient structure needs to be put in place.
One of the significant changes in private wealth law compared to 30 years ago is the desire to create generational wealth. Affluent individuals seek advice on tax efficiency and ways to create wealth that spans multiple generations. Ensuring a business remains valuable for future sales, whether by the second or fifth generation, is becoming a shared priority.
Prasad emphasizes the importance of establishing good corporate practices for family-run firms, which she refers to as “family constitutions.” These structured guidelines help business owners establish clear succession plans and financial frameworks, which are essential for ensuring the longevity of family businesses.
Large firms are well-suited to provide clients with cross-disciplinary expertise. Cassels, for instance, has a unique place on Bay Street because it is large enough to deal with high-profile deals and files but still maintains exposure to private companies and high-net-worth individuals. Prasad notes that smaller firms may struggle to provide the multidisciplinary approach required for private wealth management and may need to collaborate with external specialists to provide a full range of services.
Prasad stresses that experience with similar clients is key. “Private client services are grounded in substantive law… You need to have expertise and be able to give advice. Experience is key,” she says. Additionally, firms must be agile enough to include external experts and lawyers from various areas of law and collaborate to see the big picture when it comes to clients’ needs.
The future of private wealth law is likely to see continued growth, with more firms evaluating the need for dedicated private wealth practices. Whether all Bay Street law firms will form private wealth teams remains to be seen. However, Prasad believes that there is a need for this type of practice, and it will continue to gain momentum. As the demand for sophisticated legal advice among wealthy individuals grows, more firms are evaluating whether to develop dedicated practice groups in this area.
Conclusion
Private wealth management is evolving into a cornerstone of legal services on Bay Street, driven by the growing needs of high-net-worth individuals and families. As highlighted by Samantha Prasad, the shift from wealth creation to wealth preservation and generational planning has created a demand for specialized legal expertise. Law firms that adopt a multidisciplinary approach, leveraging tax, trusts, corporate governance, and cross-border strategies, are well-positioned to meet the complex needs of private wealth clients. The ability to provide holistic, forward-looking advice will be critical as the demand for private wealth services continues to grow.
Frequently Asked Questions
What is private wealth law?
Private wealth law involves providing legal advice tailored to high-net-worth individuals and families, focusing on wealth preservation, tax optimization, estate planning, and intergenerational wealth transfer. It requires a multidisciplinary approach, addressing areas such as tax, trusts, corporate governance, and philanthropy.
Why is private wealth management becoming more prominent on Bay Street?
The growing prominence of private wealth management on Bay Street is driven by the increasing demand for specialized legal services among high-net-worth individuals and families. This demand is fueled by generational wealth transitions, cross-border asset management, and the need for sophisticated legal strategies to preserve and grow wealth.
What role does cross-border legal advice play in private wealth management?
Cross-border legal advice is critical for private wealth clients, as many hold assets in multiple jurisdictions, such as the U.S. and Canada. Legal strategies must address international tax planning, compliance, and asset protection to ensure tax efficiency and minimize legal risks.
How do law firms benefit from offering private wealth services?
Law firms that offer private wealth services can attract high-net-worth clients seeking specialized advice. Full-service firms are particularly well-suited to benefit, as they can provide a broad range of expertise, from tax and trusts to corporate governance, ensuring comprehensive support for complex client needs.
What does the future of private wealth law look like?
The future of private wealth law is expected to see continued growth, with more firms likely to establish dedicated private wealth practices. As the demand for sophisticated legal advice grows, firms that can provide multidisciplinary expertise and forward-looking strategies will be best positioned to succeed.
