What is a Family Office?
Over the years, Family Offices have been created to cater to the needs of wealthy families in search of expert planning advice. Here are some commonly asked questions:
What is a Family Office?
A Family Office is a private legacy wealth management service offered to ultra-high net worth families to centralize control over family finances, legal, tax and administration issues. It works to provide the best solution for building, preserving and transferring family wealth through the generations.
Why use a Family Office?
A Family Office is most commonly utilized because your assets have grown in size and complexity and professional management is now required. The world’s most affluent families have established Family Offices to ensure their wealth will be preserved for their future generations.
What are the benefits of a Family Office?
- One central hub for information, advice, and an approved collaborative network for all the family’s financial and legacy matters.
- Pooled purchasing power across the family group resulting in better services and substantially reduced costs.
- A dedicated team of professionals who are focused on each family member’s goals AND the family’s common mission in a completely confidential manner.
- Continuity of true wealth from generation to generation.
- Access to professional advisors who can educate family members about their responsibilities of ownership, management, wealth, and governance
- Managing substantial liquid assets generated through the sale of a business.
- Obtaining customized credit.
- Managing multi-generational needs and educating the next generations to be responsible stewards of wealth.
- Providing estate and financial planning concierge services
What are the responsibilities of a Family Office?
The Family Office is the key vehicle for wealthy entrepreneurs to manage their wealth independently from their businesses. The purpose of the Family Office is to provide peace of mind about managing wealth.
The scope of the Family Office is significantly broader than a pure investment advisory company. The objective is not only wealth optimization but also preserving the family legacy. The Family Office provides support for the following important functions:
- Financial Planning for the Family
- Understanding Family Governance/Objectives
- Evaluating and Consolidating Current Service Providers
- Risk Management
- Return Management
- Estate Planning
- Family Governance
- Document Management
- Performance Monitoring and Analytics
- Concierge Services
How to Evaluate a Family Office Provider?
The selection of Family Office Services must be done cautiously:
1) Build Trust
Trust requires that the Family Office understands your needs and your family dynamics. Trust can be gauged from the ability of the representative of the Family Office to listen and understand your unique situation. As no one can be an expert in everything, the Family Office must be your strongest advocate to other professionals to achieve your goals.
2) Quality of Research
Check the resources dedicated to the Family Office research. The Family Office should be advisory in nature and not simply a product seller. This ensures independent advice and you are protected from owning products which are not in line with your asset allocation goals.
3) Leveraging Expertise
Who are the strategic network providers to the Family Office. The stronger the network, the better the service. .
What about your existing advisors?
Your existing advisors should be valued contributors to the Family Office. Rather than trying to replace your existing advisors, the Family Office should focus on complimenting the advice your other professionals provide to ensure that your ‘big picture’ goals for your wealth and family legacy are met.
How does Lugen Family Office work?
Our family office provides you and your family with a well established and trusted process:
Lugen Family Office is very discreet about using professionals and personnel that maintain client confidentiality at all times.
2) Comprehensive Services
Lugen Family Office has created a Strategic Network of world class institutions, firms, and professionals to ensure your Family Office needs are fulfilled.
- Major Risks To Family Wealth (quadcitywealthplanning.com)
- Family Estate Planning Offices (lawprofessors.typepad.com)
- Managing far more than just money (todayonline.com)