Family Office Support
Family office is distinct from family business. A family office is an organization with a team of dedicated professionals devoted exclusively to the investment, personal and legacy needs of a family whereas a family business is an enterprise owned and managed by a family and carrying on business in an industry.
Large family offices may have their internal administrative team, accounting and finance team, investment team, legal team, and taxation team and the operation cost would be very high whereas small family offices may employ only several staff members to take care of those services involving sensitive information (e.g. accounting and finance, record keeping & reporting, and lifestyle and concierge) and outsource those services that require technical expertise to external professionals (e.g. asset management firms, law firms, tax advisory firms, trust companies, and physical security consulting firms).
Since the needs of a family vary considerably from another, every family office is unique. A fully fledged family office generally has the following functions: investment management, finance and taxation, record keeping and reporting, estate and wealth transfer, trust and corporate administration, charity and philanthropy management, risk management, lifestyle and concierge, and family governance.
We assist clients in establishing their own single family office, including virtual family office, and provide technical and administrative support.
Common Functions of Single Family Office
Investment Management
This function involves such services as evaluating the overall financial situation, defining the investment objectives and philosophy, asset allocation and management, liquidity management, due diligence on investments, and selection of external investment managers.
Finance & Taxation
This function involves such services as cash flow management, bank accounts management, arranging for loans, bookkeeping and accounting, bill payments, tax planning and compliance, and identifying and engaging outsourced service providers.
Record Keeping & Reporting
This function involves such services as analyzing and reporting of investment performance, preparing asset list and consolidated financial reports, managing asset documentation, company secretarial services.
Estate & Wealth Transfer
This involves such services as formulating wealth succession strategies for family members (wealth protection and transfer analysis related to the management of all types of assets and income sources), and estate settlement and administration.
Family Members Education
This function involves such services as organizing wealth education, skill training, and career counseling to younger family members, implementing the concept of “family bank”, and organizing family meetings and family retreats.
Trust Administration
This function involves such services as setting up various family trusts, coordinating and monitoring professional trustees, the implementation and administration of family trusts, and the administration of the private family trust company.
Charity & Philanthropy
This function involves such services as formulating charitable and philanthropic strategies, setting up and managing private foundations and other philanthropic vehicles, and organizing charitable activities and related due diligence.
Risk Management
This function involves such services as risk analysis, measurement and reporting in respect of the physical security of family members, data security and confidentiality, and asset security, evaluating security options, medical management, and reputation management.
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Lifestyle & Concierge
This function involves such services as private club memberships, travel and accommodation planning, managing holiday properties, private jets, and yachts, planning and organizing family events, and managing ad hoc requests from family members.
Family Governance
This function involves such services adopting a family charter or constitution, which defines the mission and value of the family, the relationship between the family and the family business, and the roles and responsibilities of family and non-family members, implementing family governance structures, and coordinating the meetings of family assembly and/or family council.