Moorman and Company

The advisory specialists on your in-vestment team—the attorney and the accountant—are the anchors of your investment program. But they don't actually help you make money. That is, they don't do anything to create new capital for you. Instead they help you conserve, protect, and control what you already have.

Unlike the acquisition specialists on your team, your attorney is an independent, fee-for-services-only advisor, not a purveyor. Consequently, his or her job is to act as a buffer between you and others. Sometimes that will mean shielding you from outside influences. But often, your attorney will step between you and another member of your investment team in order to ensure that all angles of a transaction have been considered.

When, in the course of your investment career, you need advice and assistance for such things as the preparation and review of contracts and leases, you will need the services of a good legal counsel. Because you are an investor, you will need additional advice about how the acquisition or sale of assets (including the titling of those assets) will affect your overall estate from a good estate planning counsel. In most cases one specialist, a tax attorney, can perform both functions.

A tax attorney will bring to your investment team exper-tise in a variety of areas important to you, the investor. From time to time, you may need legal representation regarding securities transactions, real estate investments and business financing. In that regard, a tax lawyer will either possess the necessary information to assist you, or be able to refer you to his or her own network of attorney specialists.

Just as you have chosen the acquisition specialists on your team based upon their experience and expertise, you will want to select the very best attorney you can find. Under no circumstances should you attempt to represent yourself in legal matters. Further, don't let your pocket-book make your selection. In this regard, you will have some flexibili-ty. A junior partner or an associate in a prestigious law firm might be more compatible with your age and stage in life. Additionally, he or she will be able to provide you access to the resources of the older, more established senior partners within his or her company. In this way, you are not just hiring one attorney; you are obtaining a network of advisors headed by your attorney.

In most situations, you should expect your attorney to answer three questions when solving problems on your behalf. They are:

Will this solution work? If your attorney (just like the other members of your team) is fully versed in all of your specific investment goals, he or she should test each situation to be sure that it adheres to those goals. More importantly, your attorney will want to ensure that you conform to any legal requirements governing each type of transaction.

Is this solution the best available? In answering this question, your attorney must be prepared to offer viable alternatives that will enhance the soundness in any transac-tion. This step is designed to ensure that all your options are ade-quately explored.

Will this solution work in the future? Finally, you want to know that your advisors have considered any possible future ramifications of your proposed transactions. The idea here is not to predict the future, but rather, to make an informed decision based upon knowledgeable estimates of future consequences.

Once your attorney has answered these three questions, he or she will be ready to assist you in consummating your deal. When the transaction is complete, you should ask your attorney two further questions. Have I accomplished what I set out to do? Is there anything else I need to do in order to adequately protect myself? By obtaining the answers to these final questions, you can know if your interests have been fully represented, and if you can actually close the book on this transaction.

Finally, be aware that your attorney's job is to protect you and your interests. But, as the quarterback of your investment team, you, the investor, are responsible for making the decisions. Although you can allow your lawyer to represent you and to relieve the burden in certain situa-tions, never abdicate control of your investment career to any member of your team.