A Family Office is a concept that can appear in two different scenarios: at a family dinner table or in a business environment. Why are we so sure? Because it brings together these two spheres: family and business.
You don’t have to be a member of the Trump family or the Roy family (Succession, HBO) to set up a Family Office.
In this post we explain what a family office is and why you need one.
Family Office is recommended by Forbes magazine1 as the most necessary form of family wealth management.
In a world full of rapid change, connectivity, speed and unpredictability, uncertainty forces us to have professionals close at hand who are able to offer answers to market evolution, regulatory changes, fiscal changes and risk management.
Family Office is a concept that comes from Anglo-Saxon law, which aims to define the activity of an office focused on the wealth management of a family.
It is possible to establish preservation measures, protocols at both company and family level, family structure, distribution of functions and a plan for preparation and subsequent succession.
The term Family Office probably conjures up an image of generations and generations working in the same industry and in the same town for a small business. This may be one meaning, but, in the financial services world, it may have more connotations.
Regardless of whether the family operates in a single location, a family office is generally a private wealth management firm that offers a range of personalised services that go well beyond investment management or financial planning.
A Family Office differs from a typical generic financial advisory relationship in that it offers a service that is exclusive and unique to the needs of the family.
Having a Family Office provides enormous peace of mind, so that there will be time to manage the unforeseen events that day-to-day life can offer.
The higher the family wealth, the more you need a Family Office, specifically a Private Family Office.
What is a Private Family Office?
As we said, those families who, due to the type of company they work for, generate a large volume of assets, it is highly recommended that they hire the service of a Private Family Office.
Generally, there are two types of Family Office: multi-service office and private family office.
The main difference between the two is that the multi-service office offers its services to several families as a whole, with similar problems and vicissitudes, while the Private Family Office offers its services to only one family, due to the complexity and volume of its operations.
What does a Family Office do?
A Family Office mainly deals with all areas related to family wealth. This includes, therefore: investments (investment funds), real estate management, unitary wealth management, pension plans.
As the Family Office is the existence of a business run by and for a family, the main objective is the efficient management of the family wealth produced by the business, so the main service to be offered will be the tax management of all this wealth, so that its unity and concentration implies the best possible tax advantages for the family.
In conclusion, a Family Officer will offer as a service the adoption of all those economic and management measures that are necessary in order to achieve three objectives: preserve what has been earned, expand what has been sown and ensure its succession for as many generations as possible, with extensive support from expert advisors in economics, finance, law and taxation.
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