A family office is a private institution that manages and safeguards the wealth of wealthy families, providing financial strategy, reporting and private banking services to help families secure their futures
Family Office Opening Process
1. Recruiting professionals:
Family offices need to hire asset management, investment, tax and legal professionals. These professionals will be responsible for developing and executing wealth management plans, tax planning and legal compliance matters, among others.
2. Develop a wealth management plan:
The family office will formulate a wealth management plan according to the needs of the family. The plan will include investment objectives, risk tolerance, asset allocation, tax and estate planning, and more.
3. Determine the budget of the family office:
Family office expenses include staff salaries, rent, equipment, software, insurance, etc. A detailed budget needs to be developed to ensure the sustainability and well-functioning of the family office.
4. Determine the structure of the family office:
Family offices can be single-family offices, multi-family offices or hybrid structures. Choosing the right structure ensures the smooth functioning of the family office and best meets the needs of the family.
5. Determine the goals and responsibilities of the family office:
Before opening a family office, it is necessary to clarify the goals, responsibilities and expected results of the family office. Family offices can manage family wealth, coordinate investments, and provide services such as tax planning and estate planning.
Family Office Fee Requirements:
The cost of a family office depends on many factors, including the size of the office, the number and professional skills of the staff, the scope and quality of services, etc.
As a result, fees can range widely. Some large family offices may need to invest millions of dollars, while the fees of small family offices may only be a few thousand dollars.
Family Office Benefits
1. Confidentiality: Usually there is a high degree of confidentiality, which can ensure the safety of family property and information.
2. Financial strategies: Provide professional financial strategies to help families manage property and secure the future.
3. Unified management: Integrate family property together to facilitate unified management.
4. Family affairs management: Assist in the management of family affairs, including family members' health, education, immigration, etc.
5. Private banking services: Provide private banking services to help family members manage cash flow and investments.
6. Legal and tax advisors: Provide legal and tax advisors to help family members solve legal and tax issues.
How to set up a family office?
1. Conduct business: accounting, taxation, education, immigration, real estate, etc.
2. Family discussion: ensure that each family member has a clear understanding of the establishment and operation of the family office.
3. Form a professional team: accountants, lawyers, tax experts, etc.
4. Establish organizational structure: board of directors, management committee, etc.
5. Set up a financial system: income, expenditure, investment, management, etc.
6. Establish communication channels: to ensure the smooth operation of the family.
7. Clarify family goals: economic goals, management goals and service goals, etc.
8. Choose the appropriate legal form: partnership, limited liability company, etc.
Through the above steps, it can help you successfully set up a family office and ensure its smooth and efficient operation
Phone：+1 (617) 855-9550
Fax：+1 (800) 457-4578
Fax：+1 (800) 457-4578
Copyright © 2022 Chang & Deka | Powered by Chang & Deka