Family offices: The emerging alternative to traditional wealth management services for HNW families

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For very HNW clients, it may be beneficial to set up their own Single Family Office (SFO), where your family is the only family to be advised. Alternatively, a Multi-Family Office (MFO) structure may be an appropriate approach and may offer advantages such as the possibility of economies of scale from many families sharing the costs of the services offered or more investment solutions. wide availability, leading to better results for all customers served by the MFO.

Typically, a Multi-Family Office is useful once a family has cash assets worth $ 20 million or more, while a Single-Family Office approach requires a much higher threshold. high considering the cost of operation. This is not a hard limit, however, as family offices are able to tailor their services to suit your needs. Potential clients can also take advantage of the professional family office network, although they do not need to employ an office themselves.

Often, family offices do not have very specific expertise in each area and employ technical advisers to help with particular issues and transactions. The advantage of a family office is that it has an in-depth knowledge of your family and your business, and a general understanding of the subject matter. This allows them to communicate your family’s needs to the experts who they then hire on your behalf. This ensures that when faced with a problem they can’t solve, they can bridge the gap between your family’s needs and the best people to meet them.

What are the differences between using a family office versus an internal personal or family lawyer? What are the advantages of using the first over the second?

In-house personal or family lawyers may not be so well versed in the myriad of legal, tax, accounting, and financial planning issues and opportunities relevant to the needs of a wealthy family. A family office will bring together the required skills under one roof. In general, in addition to legal services, they have various experts on their staff. They are extensively equipped to handle any financial, business, corporate governance, estate or tax planning issues that may arise as a family evolves and needs. This diversity of experience is difficult to replicate using a family lawyer or in-house staff, as it is nearly impossible for a counselor to have all of the expertise required to meet the needs of a wealthy family. Shared expertise is much more powerful than the expertise of a single person.

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