Key Things to Consider when Establishing a Family Office
Establishing a family office can be time consuming and costly, however with the right support and knowledge it can also be a simple exercise. Building and maintaining a successful family office that is unified, clear and futuristic, however, can be difficult.
A family office will go beyond managing and safeguarding family wealth. Usually, a family office is a multifaceted organisation that acts as an intermediary between family members and service providers (e.g. accountants, lawyers, bankers, etc) that together will help secure the financial future and legacy of the family by building, preserving and transferring family wealth in a structured manner. This can be a difficult task, and becomes even more difficult where differing family personalities and agendas are thrown into the mix.
To assist in creating a successful family office that will achieve the goals and vision of the family, the following are some of the things that should be considered:-
What also stands out is the lack of a strong network for this next generation. This takes time to build and needs to be recognised. Like the comment above about working alongside professionals, the next generation needs to be engaged in the business or asset decision-making to build their experience, skills and networks to deal with the issues.
A well-established family office can have numerous benefits in ensuring that the transfer of wealth from one generation to the next is successful and achieves the vision and goals for the family.
Should you have any questions or need assistance in relation to this matter, please call your relevant ESV engagement partner on 02 9283 1666.