We spoke with
Joseph Nery, a highly accomplished attorney specializing in corporate and business law, real estate, estate planning, commercial/civil litigation, and bankruptcy. He advises individuals and businesses on a wide range of legal matters, represents clients in various transactions and disputes, and is experienced in estate planning and probate. Active in several professional organizations, including NAHREP, where he served as National President, Joseph is a frequent speaker and commentator on legal topics. He holds degrees from Northwestern University and Hofstra University School of Law. Nery's work highlights the increasing need for asset protection strategies tailored to the unique circumstances of Latino families.
“Ever since COVID, the one area that has exploded has been my estate planning,” Nery observes, As highlighted in the
Hispanic Wealth Project’s State of Hispanic Wealth Report, the Latino community is a
driving force in American entrepreneurship, creating businesses and generating wealth at an
impressive rate. However, many Latino families are unaware of the critical importance of asset protection and succession planning. This oversight can leave their hard-earned assets vulnerable and create significant challenges for future generations.
Reflecting a surge in demand for these crucial services, Nery points out that this increase is attributed to several factors, including the heightened awareness of mortality brought on by the pandemic and the increasing wealth within the Latino community.
A common challenge Nery faces involves succession planning, particularly among established business owners. He explains, "I have had several scenarios like that where clients come to me and they say, ‘Joe, I don’t know what I’m going to do. I’ve got to retire soon. I’m getting older. I can’t keep up with this. What do I do?’” This scenario highlights a key issue: the next generation isn't always interested in taking over family businesses.
This necessitates alternative strategies. Nery explains, “You have to figure out how to go ahead and ensure that they receive the value of that.” This may involve selling the business to a rival or a trusted employee or structuring a sale that provides ongoing income for the owner’s retirement.
Addressing the cultural sensitivities surrounding wealth and estate planning within the Latino community, Nery emphasizes the importance of open communication and proactive planning. “Sometimes in the Latino community, you have to scare our people,” he admits, acknowledging the need to highlight the potential consequences of inaction.
The Hispanic Wealth Project aims to increase the percentage of Hispanic households with wills or trusts to 30% and the percentage of individuals with an estate plan to 75%. Nery is optimistic about exceeding these goals: “I think the chances of increasing beyond that 30 and 75% is there’s an extreme likelihood of blowing past those numbers.” He cites the growing awareness among younger generations and the lessons learned from the COVID-19 pandemic as key factors.
Nery advises Latino business owners: “The most important thing is starting to think about that early on. You need to identify…if your kids are interested and if not, what’s your plan after that." This includes valuing your business, establishing proper legal structures like LLCs or corporations, and considering a financial strategy for transferring assets.
Ultimately, protecting assets and ensuring a smooth transfer of wealth is crucial for Latino families seeking to build and preserve their legacies. Proactive planning, informed decisions, and engaging the right professionals are vital to securing a prosperous future for generations.
Disclosure: Please note that the information provided in this article is for educational and informational purposes only and should not be construed as financial advice.