It is very popular nowadays to see references to Family Offices, particularly when it comes to wealth management for families.
The primary reason for the rise in popularity of Family Offices can be attributed to the need for high net worth families to find the right approach and tools to secure the maintenance and growth of their wealth for many generations.
Also, Family Offices are a form of wealth management in which ultra-high net worth families (UHNW) pool their wealth for the purpose of preserving and increasing it.
What Are Family Offices?
Family Offices are independent wealth management advisory companies representing ultra-high net worth investors.
Likewise, They are different from conventional wealth management businesses in that they offer a complete outsourced solution for family wealth management.
Most Family Offices provide services that include financial budgeting, philanthropic work, family businesses, transfer of wealth, and tax advisory.
A Family Office aims to provide customized wealth management solutions to fit the needs of high net worth individuals (HNWI).
From wealth management to philanthropy planning, Family Offices offer complete financial solutions to high net worth individuals.
Family Offices incorporate asset management, cash management, risk management, financial planning, lifestyle management, and other services.
Therefore, Family Offices provide the key elements for each family to tackle their fundamental problems when navigating through wealth management.
Importance of Family Offices for Wealth Management
The primary reasons why wealthy families seek support from Family Offices are to manage and enhance wealth.
It is because wealth management is not an easy job, much less quick, that the process can be supported by an outside company.
In this sense, The Family Office is also intended to help families make the most of their current assets, protect their wealth, and manage risks.
Family Goals and Conditions
A common assumption is that the size of the assets is the most critical factor in assessing the need for wealth management, when in fact it isn´t.
The family’s goals and present situation will dictate the complexity of the requirements for wealth management.
The number of family members or households, the nature of the ownership, legal structures, investment types, and the entities that house them all, are important factors to consider.
Management and Planning
High net worth families are faced with many challenges when seeking to optimize their legacy after a lifetime of accumulating wealth.
These challenges may include complex estate laws, and complicated family or company problems.
A comprehensive wealth transfer strategy must take into account all aspects of the wealth of the family.
These aspects include selling or controlling business assets, disposing of the properties, handling family trusts, philanthropic desires, and continuing family governance.
Family education is an important part of a Family Office, including training family members on financial issues and instilling family values to mitigate tensions between generations.
Family Offices operate in conjunction with a team of advisors from each of the appropriate disciplines.
The purpose is ensure that the wealth management for the family is well coordinated and tailored to their legacy expectations.
Many Family Offices serve as personal concierges for families, managing their personal possessions, and attending to their lifestyle needs.
It may include carrying out background checks on personal and business staff; providing personal security for home and travel; handling aircraft and yacht management; arranging and planning of travel; and streamlining business operations.
Benefits of Family Office
A Family Office also offers less conflicts of interest.
Family Offices focus exclusively on family wealth management, as a result, the offices are not involved in selling specific products or services, unlike financial institutions and banks.
A Family Office starts by getting to know the family’s current financial condition.
This is a complicated and time intessive task, but it offers many advantages, as the office is far more likely to provide guidance to handle wealth effectively according to personal circumstances, priorities, and family desires.
OMC Group is an international company with global presence and over 65 years of experience in the corporate services industry.
We have a team of highly qualified professionals who can assist you and take you by the hand in each step.
OMC Group provides you with the necessary solutions for the protection of your assets and effective wealth management.
Through our specialized estate planning products and services, we can help you address your family’s needs.
For more information, contact us at [email protected].
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