Rules of engagement

Did you know there is an undercurrent of mild commercial envy between lawyers and financial professionals? Admittedly, my only evidence for this is anecdotal, but it sparked a cascade of ideas about the way the legal profession engage with their clients. 

Last week, I met up with a private client partner at a prominent law firm, who shared an unspoken frustration that many lawyers feel at one time or another. That is, why is it that accountant and financial adviser fee structures are aligned to ‘lifetime’ relationships, whereas lawyers tend to do more one-off or ad hoc work? In other words, why do private client lawyers often find themselves serving specific, transactional needs – such as drafting a will, setting up a power of attorney or managing estate planning? With each transaction they have to rebuild long dormant relationships or establish new ones, whereas many accountants and financial advisers start each year with a degree of certainty in their invoicing. Crucially, they can anticipate how much work there will be and where it will be coming from. 

For a lawyer, once a task is completed, their clients often disappear until a new legal need arises. This pattern poses significant challenges in building sustainable, long-term relationships. So, how can the profession transition from a transactional approach to a more connected, recurring, advisory relationship?

The transactional trap

The transactional nature of private client law is inherently reactive. Clients seek out advice for immediate solutions to legal issues, and, once these are resolved, the engagement typically concludes. This approach, while efficient for addressing the client’s specific needs, does not foster ongoing relationships. Consequently, it limits opportunities to provide comprehensive, proactive legal guidance that better serves a client’s evolving needs.

This model also creates commercial challenges. Relying on sporadic, transactional work can lead to income volatility, making long-term financial planning for legal practices more challenging. 

Shifting to a lifetime advisory model

To move beyond the transactional trap, private client lawyers need to rethink their engagement strategies. If the goal is to establish ongoing relationships, providing regular / periodic support and advice tailored to the client’s evolving life circumstances, there are a number of services you might consider adding to your offering. 

1. Regular review meetings 

One of the most effective ways of maintaining ongoing relationships with clients is through regular review meetings. These can be scheduled annually or every other year, to ensure that a client’s legal documents and plans remain current and aligned with any changes in their life.

Significant events such as marriage, divorce, births, deaths and changes in financial status can all impact a client’s legal needs. By proactively offering review meetings, lawyers can help clients navigate these changes and enhance client satisfaction as well.

2. Document storage services 

Another value-added service is offering secure document storage for wills, trusts, powers of attorney and other important papers. By providing a secure storage solution, lawyers can ensure that these documents are readily accessible and safe from loss, theft or damage.

Coupled with regular review meetings, where stored documents are revisited and updated as necessary, this service underscores the lawyer’s role in safeguarding the client’s interests and reinforces the advisory relationship. 

3. Digital legacy vaults 

Increasing digitisation means it has become important to manage access to online assets (bank accounts, social media profiles, digital subscriptions and so on) that need to be considered in a client’s estate planning. Offering a digital estate vault service can help clients organise and secure all of their digital assets, while also making it easier for their lawyers to identify when additional legal services might be needed. 

A digital legacy vault is a secure online platform where a client can store important information alongside instructions for how matters should be handled after their death. This service can be offered as part of a comprehensive estate planning package, helping clients to manage both their physical and digital legacies in one place that’s easy to access and update. This not only adds value to a practice but also positions lawyers as forward-thinking advisers in tune with the needs of their clients.

The shift from transactional to relational client engagement requires strategic rethinking. Firms may already be offering document storage, but by making it secure, providing regular reviews and digital estate vault services in a full ‘peace of mind’ bundle, lawyers can position themselves as indispensable advisers in their clients’ lives. The goal is to build a closer relationship with your client and their family, so you can provide your core services to them throughout their lifetime and beyond, into the next generation.