INTRODUCTION Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
Artificial intelligence (AI) Rapid advances in AI technology have dominated headlines over the past year, particularly with the rise of widely accessible AI chatbots. More so than ever before, companies are incorporating AI technology into the workplace, and such technology is quickly transforming the way people work and live. However, many commentators have also raised concerns about the impact of such rapid advancement and whether AI technology could also be harmful as it progresses. The rise of AI technology raises potential issues in the legal sector as well. Many lawyers and law firms have started to harness the power of AI in their day-to-day work. However, questions remain as to whether AI will eventually be able to replicate certain skills of legal professionals. While AI may aid lawyers in the future, lawyers should evaluate the skills that may not easily be replaced, such as emotional intelligence and the personal relationships they have with their clients. Questions have also been raised regarding the eth - ics of AI, with commentators raising concerns ranging from the accuracy and dependability of such tools to the confidentiality risks for client information. With the inevitability of AI entering the legal sector comes the question of how lawyers and wealth advisers can or should fulfil their responsibilities to their clients with the assistance of AI. The future We are living in times of increased uncertainty as countries determine how to address economic vola - tility, international conflict and an evolving technologi - cal landscape. Such uncertainty will impact the trends discussed above – political volatility, transparency, the increase in trust and estate litigation, and the rapid development of technology. Of course, the world of private client advice does not involve only these areas; much of the work relates to helping families structure the succession of wealth in responsible and lasting ways, preserving long-existing family businesses, encouraging family harmony, protecting family assets for both current and future generations, and preserv - ing private property. These needs will also continue and grow.
generally involve non-contentious petitions, brought with the consent of all the interested parties. Under such circumstances, the public’s general interest in transparency may not justify the impairment of the liti - gants’ privacy. Commentators suggest that the norm of public access to court proceedings in the UK and other jurisdictions is likely to drive trust administration business to offshore forums. Rise of estate and trust litigation The world is in the middle of the greatest generational transfer of wealth in history, and cross-border estate and trust litigation has never been busier. Trustees find themselves entangled in a rising number of complex and costly cross-border disputes, often serving as the target of aggrieved beneficiaries (or excluded family members) in jurisdictions that have forced inheritance laws or that do not recognise trusts. A global recession would likely increase the occurrence of such disputes as, for example, trustees must determine whether to distribute assets to beneficiaries in difficult financial positions and make investment decisions in a volatile market. Litigation in the areas of bankruptcy and fraud may also increase. The issue of requisite capacity in the execution of documents such as wills and trusts has become a dominant consideration. With increasing frequency, lawyers are ensuring they have evidence of their cli - ents' requisite capacity at the time of execution, as well as emphasising the importance of planning for a client's future incapacity, such as with powers of attorney and succession planning. Whether representing fiduciaries or challengers, anticipating litigation can go far towards increasing the likelihood of obtaining a favourable result (wheth - er through the courts or via a negotiated settlement). The greatest risks in multi-jurisdictional trust litigation come from the potential clash of laws and procedures of the different countries, yet these inconsistencies also create opportunities for surprise and victory. The litigation team that truly understands the intricacies in each jurisdiction and appreciates the contrasting cultural forces can exploit the gaps that are created to its substantive and procedural advantage.
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