The concept of a family office has gained popularity over the last few years because it offers a dedicated solution to various needs of the ultra-rich, whether it is succession planning and wealth management or tax compliance and diversifying assets. From the day-to-day administration and management of your affairs to helping you have a long-term strategy to leave behind your legacy, a family office is here to help you. Let’s take a look at all the roles a family office plays:
- Helps in succession planning
When it comes to family wealth, maintaining it across generations is the key. Leaving behind a legacy that can be further built on is important and that’s what a family office aids in. A family office can help come up with a long-term plan that takes into account the needs of all family members while also looking at building wealth further. In addition to this, a family office can also help in succession planning in a way that the sudden death of a member or the exit of a family member from a crucial role doesn’t leave the estate neglected. Ensuring that the right person is taking care of the right function will lead to smooth governance and allow for perpetuity.
- Manages and preserves wealth
Financial mismanagement and neglect can erode your wealth quicker than you would expect. Hence, a family office’s primary function is to undertake strategic planning to ensure that your fortune is preserved. Thus, other than succession planning, a family office also ensures that various aspects of your business and assets are well managed. A family office also makes sure that there’s a balance maintained between the financial needs of different family members and wealth creation as this task is difficult for individual members to undertake on their own.
- Aids in philanthropy
Philanthropic pursuits are often important to high-net-worth individuals and a family office can help you put your money, time, and energy to use in the most effective way to support causes that you care about. This includes setting up welfare organisations, donor funds, trusts, etc. A family office also helps ensure that your support to charities and causes of your choice continues even after you are no longer around.
- Protects privacy
As opposed to seeking the services of investment advisors, a family office is personal. It is tailor-made to work only for your family and this ensures that your and your family’s privacy is protected. All personal information, from family dynamics to medical conditions, is secure and known only by a few people. Thus, family business succession planning ensures that you get all the services you require while also maintaining sensitive information and privacy of the family.
Thus, a family office goes beyond providing the services of an investment advisor. In addition to making strategic investment decisions and reviewing your assets and liabilities, a family office exists to look after the complex needs of your family.