Private client accountants and lawyers may offer many of the same services. But there are also some significant differences between the services offered by lawyers and accountants. Indeed, lawyers and accountants frequently refer clients to each other.

The drafting of legal documents, such as Wills, trust deeds and to obtain a grant of probate, is generally the preserve of lawyers. This is because complex legal documentation is usually required, for example, to obtain a foreign probate. Some probate can also involve quite complex conflict of law issues that would be outside the normal practice of even the most experienced accountant.

Lawyers will often take the lead in devising overall financial structures, notably Wills and settlements, for clients and then work with other professionals like accountants to implement it.

Among the wealth management services typically offered by law firms are:

• Helping to take advantage of tax exemptions, reliefs and tax planning schemes
• Wills and living Wills, including to mitigate inheritance tax (IHT)
• Probate and estate administration, such as advising on the terms of Wills, the application of intestacy rules and preparing for and obtaining grants of representation, including applying for powers of attorney
• Providing advice on the drafting and construction of settlements and trusts. Most private client lawyers will act as trustees and carry out the administration of trusts
• Establish and manage charitable trusts
• Advise on the sale and purchase of property and leasehold transactions
• International advice on trusts, estates and taxation. This will include the use of double taxation treaties to reduce exposure to tax
• Wealth protection. An increasingly important area is protecting family assets from divorce settlements
• Structures for non-domiciled individuals and overseas assets

On the other hand, tax compliance work is usually carried out by accountants rather than lawyers. For example, for advice on self-assessment tax returns, you will usually turn to an accountant.   

The range of services offered by accountants varies and only some are authorised to provide financial planning. Among the services that private client accountants may offer include:

• Trusts and estate planning
• Owner managed businesses – including advice on start-ups through to structures for tax planning and shareholder exit planning
• Tax compliance
• Financial planning, including investment management
• Establishing and managing charitable trusts

It can be argued that “aggressive” tax planning schemes for multiple clients have been more commonly promoted by some firms of accountants than private client lawyers. It is suggested by lawyers that they concentrate on producing bespoke tax planning structures for each client rather than establishing a scheme and then seek to market it.

The largest accountancy firms generally have a greater geographical spread than law firms. They may have tax experts positioned around the world and therefore have easy access to this potential expertise. Law firms argue they can buy in the required expertise from the “best third party sources” in any country around the world.

Whether you consult a lawyer or accountant, or both, it is important to check the potential fees beforehand. These can vary significantly and can reach as high as £700 an hour. But it is possible to use partners at leading law firms in London for £300 an hour.