​As a specialist in Legal Support recruitment and someone who engages daily with clients and candidates across the legal sector, I’ve started to notice some common misconceptions about working in the Trusts and Estates field. It’s a practice area that struggles to attract emerging talent.

Many legal secretaries, legal executives and lawyers view trusts and estates as dry or uninspiring, often associating the work with retirement planning or procedural matters with the elderly. But this perception couldn’t be further from the truth.

So, to unpack what it’s really like to work in this area, I recently sat down with Lee Harris, Trust and Estate Practitioner (TEP) at Martelli McKegg, to understand what it truly means to work in this field. From the intersection with foreign tax and relationship laws, to navigating the intricacies of family dynamics and being a part of intellectually stimulating work that requires empathy and strategic thinking, Lee offers her insights into why Trusts and Estates law is far more than meets the eye.

Read below what career pathways are available when working in this area and what the work really looks like.

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What sparked your interest in trusts and estates as a practice area?

I started my career as a Legal Executive at Kensington Swan in 1986. After returning from a family OE to the Global Financial Crisis in 2008, I was forced to reinvent my career, which led me to the New Zealand foreign trust industry.

At that time, there was a principle that a country could not be called upon to assist another country to enforce taxes that were owing to them. Considerable focus was put on different structures and applicable laws (including tax and inheritance law) that were available as part of worldwide estate planning. “Jurisdiction shopping” enabling a client to choose the laws of one country, with no oversight by their home country, was a key focus, and New Zealand’s tax transparent structures and reputation featured highly.

The foreign trust industry was an ideal area for my interests in tax and French language to develop. I found my ability to understand foreign laws provided significant benefit when explaining to foreign colleagues how New Zealand common law differed to civil law. It was a case of standing in their shoes to be able to provide a breakthrough in communication.

The landscape for foreign trusts changed significantly after the April 2016 leaking of the Panama Papers. The leak sparked changes to the disclosure requirements for foreign trusts, as well as increased sharing of information across borders between authorities.

When I returned to working with mainstream law firms in 2015, I realised that this misunderstanding of how foreign laws affected New Zealanders was an opportunity. Kiwis by nature are adventurous and New Zealand is a melting pot of cultures. At the last Census 42% of us were born overseas. It is common for children to head off on OE’s, with many settling roots abroad. I’m driven to ensure that Kiwis and their families are looked after and that they do not inadvertently risk losing assets and wealth due to the tax implications of foreign states when they look to structure a trust or an estate. As the litigators among us will attest, it is frequently upon death that all is laid bare, including the reach of foreign taxes and rights.

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I noticed you have done the Society of Trust and Estates Practitioners (STEP) Diploma in International Trust Management qualification (Diploma). How has this benefited you to your role?

By completing my Diploma, I am recognised internationally as an expert in inheritance and succession planning and am known as a Trust and Estate Practitioner (TEP). Most TEPs are lawyers, accountants, financial advisers and practitioners who help families plan for their futures. At the time that STEP established a presence in New Zealand, it was possible for practitioners with expertise in the Trusts and Estates area to apply to be recognised as a TEP, whereas I chose study as my pathway to become a TEP.

My career has developed into a space where I have a significant client base and I am able to advise at a senior level. My expertise is highly regarded by Martelli McKegg, and I am often brought in to advise Partners on intricate foreign laws and the implications on a trust or estate plan that may need to be considered. I also regularly assist other law firms where expert advice is required.

My skillset is niche. I have presented to a wide range of organisations, including at the NZLS Elder Law conference in 2017, CAANZ and STEP. These days, I focus on training and presentations with accountants.

I also spend a lot of time accompanying clients on complex Trusts and Estates disputes, often where family members do not reside in New Zealand, or where assets and family are based in other countries. I’m seeing more and more situations where lawyers try to use jurisdiction shopping to obtain an outcome that benefits their client in a particular jurisdiction, so my skillset enables a global view to be taken and to consider which law should prevail. Tax, relationship property and rights of children feature highly in these disputes.

What is the difference between a TEP and a Legal Executive?

The difference between a TEP and a Legal Executive is significant. Legal Executives typically work at an instruction level and are generally limited to transactions dealing with assets acquired within New Zealand. In contrast, a TEP is internationally recognised as an expert in inheritance and succession planning and often takes on the role of trusted adviser.

The STEP Diploma is a rigorous qualification. At the time I completed it, there were three-hour closed book examinations with a pre-requisite to complete a closed-book certificate level qualification before starting the Diploma. There is now a dedicated STEP New Zealand diploma, but this focuses on New Zealand Trusts and Estates law. Several lawyers at Martelli McKegg are currently studying for the New Zealand diploma.

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What do you think someone needs to succeed in the Trusts and Estates area as a Legal Executive?

To be successful in the Trusts and Estates or Private Client area, you need to be someone who is understanding and genuinely interested in listening to people and their family dynamics. You need to think holistically, be a natural problem solver and approach every situation with curiosity. Asking insightful questions is key to uncovering the true purpose behind setting up a trust or an estate. Identifying the laws that apply is also essential as foreign connections frequently undermine the effectiveness of the structure. A trusted adviser will build strong networks and naturally develop rapport, creating an environment where people feel at ease sharing very private and complex matters.

The key thing to remember is that trusts don’t travel well. Therefore, an expert trust adviser, Legal Executive, or TEP will ensure that overseas tax and estate planning obligations such as capital gains, death duties, forced heirship rights and foreign relationship regimes are considered. They will also consider worldwide assets as part of the planning and consider how beneficiaries and charities are best provided for across jurisdictions.

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What are typical matters you would manage on a day to day basis in your role?

At the moment, most of my work is of a contentious nature. For example, freezing orders against NZ assets as a result of foreign proceedings linked to children’s forced heirship rights, conflict arising from different rights that children have in foreign jurisdictions and relationship property work. Over half of my clients have French connections, including New Zealanders living overseas who haven’t thought about the impact for company and trust structures, or French clients with New Zealand assets, but I also work extensively with clients across the globe who have New Zealand connections. As a true Trusts and Estates Specialist, I build trust from the ground up, going beyond regularly used precedents, understanding that one size does not fit all.

My work extends into conflict of laws and cross-jurisdictional complexities as once the laws of more than one country apply; it is essential to determine which law prevails. My work involves navigating foreign succession laws and conducting ongoing reviews of established trusts to ensure they continue to operate as intended in light of evolving tax laws and legislative changes across borders. I’m frequently approached when New Zealanders are having problems with foreign notaires, which occurs frequently for foreign estate and property transactions.

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What makes this area of law exciting or rewarding for you?

With over 30 years’ experience in the practice area, I still enjoy the complexity of the work. I thrive on the continual problem-solving involved in finding solutions that work for all parties across all jurisdictions. To me, this is what a trusted adviser should be.

I have a particular appreciation for French and civil law and I enjoy working with clients to strike the right balance between their wishes and the realities of all applicable laws and tax implications.

I value the fact that my qualifications and expertise are internationally recognised allowing me to collaborate effectively with overseas authorities, lawyers and notaries in protecting my clients’ intentions and securing their legacy. There are also times when I feel I’m assisting for the betterment of NZ society. For example, I recently managed to legitimately obtain 100% exemption from French death duties for New Zealand charities.

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What do you feel would be the most common misconceptions people have about working in the trusts and estate area of law?

Most people assume that Trusts and Estates work is boring, precedent focused, repetitive, flat fee work that lacks detail and is hard to relate to. But this couldn’t be further from the truth. Life experience and maturity bring enormous value when it comes to understanding complex family dynamics and challenging assumptions about what a family should look like. More and more people are willing these days to challenge estates and trusts, so it is essential to factor in potential threats for a client’s planning.

Trusts and Estates work offers an exciting opportunity and immense career growth beyond general practice when the law firm value a worldwide perspective for their clients. My personal view is that there is sufficient information available now in the public domain that legal and accounting firms should at least realise that foreign connections are a warning alarm for their clients, and failure to alert their clients to this carries risk. Firms like Martelli McKegg, who accept this position, are equipped to handle exceptionally fascinating matters working with high net worth and high profile individuals, complex relationship property disputes, and foreign asset structures. My cross-border skillset enables me to identify solutions for my clients that others cannot. This area of law is dynamic, personal, and deeply rewarding for those curious enough to look beyond the surface.

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How has your work changed over the past 5–10 years — legally, culturally or technologically?

The most significant and fascinating shift came with the introduction of the Convention on Mutual Administrative Assistance in Tax Matters in 2012. Once tax authorities agreed to help each other enforce their tax debts, automatic information sharing agreements were entered into by all major jurisdictions to ensure transparency on taxpayers’ worldwide activities. This is supported by anti-money laundering and countering the financing of terrorism base requirements across all jurisdictions to ensure that a taxpayer’s activities will be identified, no matter which jurisdiction they are dealing with. This transparency should have impacted attempts to benefit from 'jurisdiction shopping'. However, there are still incredibly few practitioners who recognise the importance of understanding foreign connections and it is relatively common for pre-Convention advice to have influenced foreign clients’ investments in New Zealand. As a result, many clients remain ill-informed of their worldwide situation, even when they are proficient with AI. I am seeing more and more contentious work come across my desk once the reality of ineffective planning comes to light.

New Zealand has been slow to adopt the minimum standards required by FATF for our AML/ CFT regime. The reporting changes for active domestic trusts is an example of changes that were a direct result of our negative rating when reviewed for compliance. Culturally, I focus unapologetically on the hurdles that need to be overcome when dealing with conflicting laws.This includes convincing foreign advisers, as whether or not they are willing to understand conflicting laws and the law that prevails has a significant impact on the way that a solution can be found. I have developed relationships with trusted advisers in various countries in order to facilitate this.

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How do you see the estate planning area of law evolving and are there any significant changes happening at the moment in this space?

I see automation and digital advancement playing an increasingly significant role in the Trusts and Estates practice area for general administration where the scope for conflict is low, especially with the emergence of digital assets like Bitcoin. However, the litigious nature of beneficiaries seeking to attack trusts and estates will continue to require a trusted adviser to be involved, and as soon as there is any foreign connection, I expect information collection to increase. Currently, many people are not aware of the obligation to include gains from Bitcoin in their tax returns, which creates a false sense of security for many holders. I’m also seeing people who obtained advice at a time when tax authorities would not co-operate, so hopefully stories of enforcement will convince them that cross-border advice is a very good investment. One particular area that I believe is likely to change in New Zealand is to identify and report on assets held jointly by non-residents that pass automatically to the surviving non-resident, as our treatment of joint ownership frequently does not correspond with the foreign treatment and currently enables the asset to escape the radar of the foreign tax authority.

Given New Zealand’s melting pot of cultures, I would encourage the NZ Law Society to enhance their education programme by placing a greater focus on the laws of foreign jurisdictions. In the meantime, STEP plays a significant role in the cross-border area by providing resources and a network of skilled foreign advisers.

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What’s the most important piece of advice you’d give to someone starting their career in estates?

In New Zealand, becoming a lawyer remains the gold standard for most law firms.

However, I actively encourage legal secretaries, legal executives and lawyers to pursue a qualification with STEP if they wish to position themselves for the future. With a STEP qualification, and the support of the right firm, I believe there is real opportunity for practitioners to add immense value in the Trusts and Estates space.

Being involved with the right firm is essential if the cross-border area appeals. If a firm doesn’t understand the implications of the Convention and subsequent exchange of information agreements, they are unlikely to be the right firm for a person with these interests. Martelli McKegg has embraced my specialised expertise in foreign jurisdictions, frequently involving me in complex matters alongside Partners and promoting my skillset to our referrers. Beyond that, it opens the door to a high-level, strategic, and commercially focused career, one that is both intellectually stimulating and deeply rewarding.

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Do you see the role of a Trusts and Estates Legal Executive changing compared to what it may have been 10 years ago? If so, how?

I believe that tax laws will continue to evolve, with tax authorities increasingly sharing information across borders in real time. An understanding of the implications of foreign connections is critical, as advisers.

This growing international oversight, which inevitably will result in publicised case law, will place greater restrictions on how trusts are structured to protect assets. As a result, there will be increasing demand for skilled professionals, not just lawyers, who understand foreign planning matters and who can provide valuable, strategic advice. For legal executives, legal secretaries, and other legal professionals, this represents an exciting opportunity to step into a high-value, commercial advisory role and build a meaningful, specialised career in the Trusts and Estates space.