Family business owners can face complicated financial, legal, and administrative issues. For families with a high level of complexity and high net worth, it may be worth considering a family office, where a dedicated staff of advisors works closely together to manage the family’s overall financial and business matters.
Family offices offer a one-stop-shop for financial, investment, legal, insurance, estate, and tax planning. Typically, bookkeeping and administrative services are also included. Family offices come in many shapes and sizes—some work with only one family while others, known as multifamily offices, work with several wealthy families.
Family offices offer significant benefits:
Coordinated goal setting. With everyone on the same page, the family’s objectives are clearly defined and pursued. Nothing falls through the cracks, and decisions are made with the same aims and objectives in mind.
Proactive, personalized service. The advisory team knows the family well and is highly responsive. Team members are also aware of and prepared to deal with complex family dynamics.
Integrated planning. With all advisors aware of the big financial picture, the family receives thorough and complete input and advice. The result is a well-thought-out, comprehensive strategy for the family’s long-term success.
Philanthropy consulting. Leaving a legacy is important to many families. A family office can help create a strategic plan for the family’s philanthropic endeavors, working with the advisory team to ensure that family giving is accomplished in the most tax-advantaged way.
Generational consistency. It’s comforting to know that future generations will enjoy the benefit of working with a stable, seasoned team of professionals who are aware of the family’s history, needs, and goals. This consistency can be especially helpful in times of transition for the family business.