What is a Family Office and What Does It Include
A family office is a private entity that is established by families with ultra-high net worth. The primary goal of a family office is to effectively manage and sustain the wealth of the family across various generations. Essentially, a family office offers a comprehensive suite of services that surpass the services offered by a traditional financial management entity. It would not be wrong to state that a family office serves as a personal headquarters for families with ultra-high net worth.
Read on to learn more about the services offered by a family office.
What is A Family Office – An Overview
A family office is for wealthy families and acts as their personal wealth management advisory entity. OK, family offices provide a wide spectrum of financial services compared to traditional wealth management services. Families with ultra-high net worths can hire their own family office advisors, who provide services such as investment management, investment planning, budgeting, philanthropic giving, wealth transfer planning, budget management, and tax services.
Understanding the Types of Family Office
Before we explore the rules and responsibilities of family offices, it might be in your best interest to understand the various types of family offices. Starting with a traditional family office, you should know that this entity is exclusively established by a wealthy individual for the management of the family’s wealth. The traditional office comprises experts, such as a tax specialist, estate planner, accountant, and other staff, to protect and grow the wealth of the family.
On the other hand, a multi-family office is an entity that manages the wealth of more than a single family while offering the same types of services that are provided by a traditional family office.
What is The Role and Responsibility of a Family Office
You should know that the services that family affairs provide can differ widely, as they depend on the situation and needs of a family. For instance, one family might need a family office for high-caliber financial advice from a group of experts, whereas another family might require the services of a family office to actively organize their respective lifestyle needs.
With that said, the responsibility of a family office includes so much more than providing personalized advice and services along with a comprehensive wealth management plan, which is why running a family office is not the typical job of a single professional advisor. In other words, family offers include a very coordinated, efficient, and collaborative effort by a team of professional experts from various backgrounds, such as legal, investment, insurance, tax disciplines, and estate.
Potential Services That A Family Office Includes
When it comes to the various services offered by a family office, you should know that these services are exclusively tailored to meet the unique needs of each family. However, typically a family office offers investment management services for the efficient management of a family’s assets, including liquid investments, managing family trusts, and estate planning.
A family office also provides strategic wealth management planning, along with managing the philanthropic services and charitable activities.
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