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Private wealth management

Benefits of private wealth family planning and management

Private wealth management | A family business, which has multiple interests and considerable wealth, can seek the benefits of structures that allow for the administration and management of that wealth, and more importantly, allow for its succession to future generations with a family wealth planning.

There are multiple tools used to manage wealth, however, the most commonly used are private interest foundations and trusts.

Choosing between one or the other structure is a personal decision and responds only to individual needs. 

It should be noted that, although they have some differences, both are effective and used both in Panama and in jurisdictions such as the British Virgin Islands, Bahamas, and Nevis. 

The main difference between these two vehicles is that a trust is a legal act between a person – the settlor – and a person called the trustee. 

Thus, the settlor transfers his assets to be managed and administered by the trustee in accordance with the rules set forth in the trust instrument.  Under this structure, the trustee becomes the legal owner of the assets.

On the other hand, Private Interest Foundations are separate legal entities, in the same way as a corporation. They have an administrative body called the “foundation council”, which must be formed by a minimum of three natural persons, or one legal person, according to the founder’s choice, who can have any nationality and can even be beneficiaries of the structure.

Under both tools, the objective is the same: to administer and manage the assets for the beneficiaries, this is part of family wealth planning.

What Is Private Wealth Management?

According to Investopedia Private wealth management or family wealth planning is an investment advisory practice that incorporates financial planning, portfolio management, and other aggregated financial services for individuals, as opposed to corporations, trusts, funds, or other institutional investors. 

From the client’s perspective, private wealth management or family wealth planning is the practice of solving or enhancing their financial situation and achieving short-, medium-, and long-term financial goals with the help of a financial adviser.

From the OMC Group perspective, private wealth management or family wealth planning is the practice of delivering a full range of financial products and services to clients, so that those clients can achieve specific financial goals.

Why organize family private wealth management/family wealth planning?

There are multiple reasons why a person or a family group seeks to organize their wealth using these structures and have family private wealth management and family wealth planning.

One of the main ones is that they seek to organize the succession of assets to the next generations, under the premise of leaving in order the transfer assets in which years of hard work have been invested. 

Other reasons are the volume of assets or a personal security issue. 

Estate planning circumstances

Regardless of the circumstances and the vehicles involved, it is important to be clear that estate planning should not begin at the end of the career or life of the asset holder, but well in advance.

Is not an option

Not having a family private wealth management or family wealth planning should not be the option, nor should rush decisions by doing it at the last moment or when there is no other option left.

This is an extensive process in which many elements are considered: family conversations, choosing the right structures, and evaluating them as time goes by; among other aspects.

With proper organization, management, and goal setting, you will be able to successfully ensure your succession planning with which you will be able to preserve the family wealth and diversify it.

Likewise, integrating an expert in these matters into this process will provide a strategic and objective vision of adequate and effective ways to manage the estate.

If you are interested in reading more about us, access our blog.

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OMC Group

OMC Group specializes in the provision of corporate and fiduciary services from recognized jurisdictions around the world. Since 1955 we have been servicing leading financial institutions with a commitment to developing longstanding relationships.

Through our own network of offices, we are committed to delivering a timely and personalized service to our clients globally.

By choosing OMC Group you will obtain:

  • Over 65 years of experience.
  • Global presence.
  • World-class compliance and KYC practices.
  • Accessibility in your own time zone.
  • Tailor-made solutions.
  • Competitive pricing structure.