Do I Need a Family Office?

Find out if it's the right choice for your family

There are many good reasons to open a family office that go beyond level of assets. However, it's not the right option for everyone.

Family groups decide to start offices for many different reasons. A family typically starts a family office to invest the assets generated by the sale of a family business. FOX research indicates that it can make financial sense for a family with US$100 million or more in assets to consider a dedicated family office if the family has a desire for privacy and control and is willing to manage a sophisticated financial business.

Reasons to Start a Family Office

Control of the Assets: The family’s stated goals for financial security, wealth preservation, and family legacy drive the work of the family office. The family is able to directly oversee decisions about family financial matters.

Continuity of the Family: Many families rely on the family office to foster a sense of community and family unity over time. The family office serves as a partner with the family in the work of sustaining the family’s assets.

Objectivity in Decision-making: Clients of a family office have access to a dedicated team of trained professionals whose sole purpose is coordination of the family’s key assets. There is no conflict of interest in this business model; the interests of the family are aligned with the interests of the advisors because the advisors work directly for the owners.

Customization of Services: The service menu, educational offerings, and customized financial reporting are developed with the clients and for the clients.

Confidentiality of Information: This dedicated business entity provides the best protection for the family’s privacy and security of financial information.

Integration of Financial Strategies: The job of the family office is to consider the impact of each financial decision – from bookkeeping to philanthropy – on the strategic objectives of the client and family at large.

Education of Owners: A primary role of the family office is to provide family members with the information they need to make informed and effective financial and philanthropic decisions.

Source: FOX Guide to the Professional Family Office

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