Top three key takeaways from the Law Society of Scotland’s wills, trusts, and executries conference
Last month, Exizent had the privilege of sponsoring the Law Society of Scotland’s annual Wills, Trusts and Executries Conference where experts explored the latest insights shaping the landscape of estate planning and executries. At Exizent, we are committed to improving the estate administration / executry process and our active engagement with these discussions helps shape the development of our cloud-based software, specially designed for legal and tax professionals in the UK.
In this blog, Luke Spurr, an Account Executive at Exizent, delves into three key challenges discussed at the conference and our views.
- Trusts and Taxation
Why is this a challenge?
The law of trusts is complex. With various types including discretionary, life interest, and bare trusts, each governed by specific legal and tax implications. Executry lawyers must navigate these complexities to ensure compliance and optimize outcomes for their clients.
Key Takeaways and Considerations:
- Understanding Trust Variants: Each type of trust serves different purposes and comes with unique legal considerations. Practitioners must thoroughly understand these distinctions to advise clients effectively.
- Tax Implications: Trusts can attract various taxes such as inheritance tax, income tax, and capital gains tax. Awareness and planning are essential to mitigate these liabilities.
- Estate Planning in a Globalised World
Why is this a challenge?
Globalisation has made estate planning more complex, with clients often having assets in multiple jurisdictions. This adds layers of legal considerations and complexities.
Key Takeaways and Considerations:
- Jurisdictional Variations: Different countries have varying laws regarding inheritance, taxation, and asset distribution. Lawyers must be knowledgeable about these differences to provide accurate advice.
- Domicile of Origin vs Domicile of Choice: A person’s Domicile of Origin is acquired at birth. Whereas a domicile of Choice is acquired after a range of threshold have been met. Establishing whether a Domicile of Choice has been acquired is crucial.
- AI in Private Client
Why is this a challenge?
AI is transforming legal work, offering both opportunities and challenges. For executry lawyers, the integration of AI tools requires a balance between leveraging technology for efficiency and maintaining the personalized service that clients expect.
Key Takeaways and Considerations:
- Traditional vs Generative AI: Traditional AI is rule based, which typically features pattern recognition. This is trained and will constantly provide the same output. Generative AI’s algorithm is trained to constantly learn from itself. This must generate a response, even if it doesn’t have the information needed to do so.
- Generative AI Challenges: There are a range of challenges associated, including the use of copyrighted information, fake content, personal information, data dependency and more. Understanding these and how best to minimise them is crucial before AI is used in legal firms.
- Accuracy and Liability: AI cannot be blamed for any mistakes. As we have outlined above, the laws of Tax, Trust and Executries are extremely complex and if Generative AI is going to be relied upon, legal practitioners must be entirely confident in accuracy.
Conclusion:
The Law Society of Scotland’s Wills, Trusts and Executries Conference highlighted a few of the many challenges facing executry lawyers today. From navigating the complexities of trust laws and taxes to integrating AI into legal practice, the legal landscape is evolving rapidly.
By staying informed, adapting to new technologies, and fostering a collaborative approach, executry lawyers can effectively meet these challenges and continue to provide exceptional service to their clients.
