Samantha Prasad says large firms are well-suited to provide clients with cross-disciplinary expertise
The demand for legal services among high-net-worth individuals is rising, and Bay Street firms are preparing to meet this growing market, says Samantha Prasad, a tax law veteran and a partner at Cassels Brock & Blackwell LLP.
To succeed in this field, large firms must demonstrate adaptability, have experience with private clients, and have strong industry connections. Meanwhile, Prasad says smaller firms may struggle to provide the multidisciplinary approach required for private wealth management.
Why now
Prasad says the increase in private wealth clients is largely driven by a generational shift as business owners transition from entrepreneurs to high-net-worth individuals.
As clients grow their businesses, lawyers guide them through expansion, sales, and wealth structuring. Once a company is sold, clients shift from corporate legal needs to personal wealth management, requiring estate planning, investment strategies, and intergenerational wealth transfers.
Read next: The importance of hiring an estate planning lawyer
“It's a natural progression to continue to work with these clients in different phases of their lives. We at Cassels identified a need for this,” Prasad says, adding that the firm’s private wealth group has “grown enormously over the last few years.”
She says private wealth law requires a broad multidisciplinary approach spanning tax, trusts, corporate governance, finance, and philanthropy. It also requires collaboration with banks, accountants, and family offices.
Many clients now hold assets in both Canada and the US, adding a cross-border legal dimension that includes international tax planning, compliance, and asset protection.
“The client gains all this liquidity and says: ‘Maybe it's time to buy that nice, big vacation home in the US.’ Well, buying a vacation home in the US is not as simple as you think. You're creating a presence in the US, and all of a sudden, you open yourself to the IRS. At that point, we need to put together a tax-efficient structure,” she says.
Generational wealth
Prasad says one of the significant changes in private wealth law compared to 30 years ago is the desire to create generational wealth. This is also one of the most critical opportunities for private wealth legal advisors.
Affluent individuals seek advice on tax efficiency and ways to create wealth that would span multiple generations. She says that ensuring a business remains valuable for future sales, whether by the second or fifth generation, is becoming a shared priority.
However, with the low success rate of businesses that make it into the third generation, Prasad says it is essential to establish good corporate practices for those family-run firms. She refers to these structured guidelines as "family constitutions," which help business owners establish clear succession plans and financial frameworks.
“When I meet with clients, I want to understand their background. I want to understand their family, I want to understand their goals, and then I can reach out to different partners … within the private wealth group,” she says.
Tax law, in which Prasad has built her career, is just one piece of the puzzle for servicing the needs of private wealth clients.
“My coworker describes this through a Venn diagram. Tax law is definitely inside the intersection, but it overlaps with corporate law, which also overlaps with estate law… You also have to work with the financing group because they are … the ones creating or transferring liquidity to the next generation,” she says.
Larger firms have it easier
Prasad says that since comprehensive legal services are essential for private wealth clients, full-service law firms are better positioned to benefit from the rising demand.
Historically, smaller firms have served high-net-worth individuals and private companies, while some of the largest national firms have focused on corporate clients and significant transactions. However, as the need for sophisticated legal advice among wealthy individuals grows, she adds that more firms are evaluating whether to develop dedicated practice groups in this area.
“Cassels has a unique place on Bay Street because it is a large enough law firm to deal with high-profile deals and files but still maintains exposure to private companies and high-net-worth individuals,” she says.
Smaller firms may find it challenging to serve private wealth clients, and they may need to collaborate with external specialists to provide a full range of services, Prasad says.
On the other hand, for firms looking to compete in the private wealth space, size alone is not enough. The firm must first be agile enough to include external experts and lawyers from various areas of law. Team members must also be able to collaborate and see the big picture when it comes to clients’ needs, she says.
Prasad says the critical factor, however, is experience with similar clients. “Private client services are grounded in substantive law… You need to have expertise and be able to give advice. Experience is key,” she says.
Whether all Bay Street law firms will form private wealth teams remains to be seen, and those firms are “going to have to … decide if this is an area they want to expand into,” Prasad says.
On the other hand, “there is a need for this type of practice, and I definitely think it [private wealth] is going to continue to gain momentum,” she adds.
