In recent years, the number of high-earning business owners and families who have sold their companies has also grown. Global wealth continues to rise, as does the number of new millionaires. Many are seeking a customized solutions outside of traditional wealth management advisors to preserve wealth and support their financial and investment needs while fostering softer assets and factors. These include needs such as family continuity, education, succession planning, philanthropic endeavours and next-generation engagement.
For these reasons, the formation of a family office may be considered. However, to determine whether a family office is a viable option, it is necessary to understand what a family office is, the costs involved and the types of family offices that exist. It is also vital to ask and answer specific questions that may help to clarify objectives that assist in this decision-making process.
The term 'family office' often evokes images of a multi-generational family business where various family members come to work each day. While this could very well describe a family office, within the financial services industry, the term family office has come to have a far broader reach in meaning as of late as it has needed to adapt in order to suit different types of family structures, wealth owned and even geographical setups. Today it is used as a broad term refer to the numerous structures that exist to serve a family's business and even personal needs.Today In: Leadership Strategy
In essence, family offices are privately held companies designed to assist ultra high net worth individuals and families with wealth and investment management as well as softer, yet equally pressing concerns such as succession, next generation engagement and often servicing the families greater goals.
This leads to the many types of family offices on offer today. One could say there are as many "types" as there are families but traditionally there have been two major forms of family offices, multi- and single-family offices. However, as the family office landscape evolves, a new generation of family office solutions is emerging.
This post originally appeared here.
