Should You Create a Family Office? Advantages and Considerations

As a high-net-worth individual, you are familiar with the “family office,” but its purpose and benefits can seem vague. Simply put, a family office is an organization that supports and protects the financial needs and assets of a family. Rather than placing all the trust of a family’s entire assets in the hands of one individual, the family turns to an external expert to serve as a centralized management hub for the day-to-day management of the family’s needs, as well as long-term strategic planning and risk management to sustain the family’s wealth.

While some high-net-worth individuals have a personal assistant or a single-family office, this article focuses on the multifamily office, including who can benefit and the advantages they provide.

Who Needs a Family Office?

Family offices are best suited for multigenerational families with a net worth of more than $10 million. Such families have several of the following characteristics:

  • A complex estate plan
  • Extensive travel schedules and time constraints
  • Multiple homes
  • Assets highly scrutinized by the IRS, such as airplanes and yachts
  • Need for internal controls to ensure security and privacy

Benefits of the Family Office

A family office provides an objective team of professionals who are committed to protecting and furthering the family’s assets. There is no conflict of interest because the office works directly for the owners. The family office brings together all the professionals the family needs including, but not limited to, accountants, attorneys, investment advisors and bankers.

Additional benefits include:

  • Breadth of experience and specialization for high-net-worth individuals
  • Broad range of available resources
  • Extensive internal controls to protect the safety of the client
  • Cost savings
  • Accessibility
  • Daily management of assets with comprehensive financial oversight
  • Confidentiality
  • Customization of services according to family’s objectives
  • Neutrality and objectivity
  • Synergistic sharing of ideas
  • Integration of financial strategies
  • Realization of philanthropic legacies

Internal Controls

When you consider the assets and privacy issues at stake, it’s not surprising that risk management is one of the family’s chief concerns. From premier insurance coverage to the titling of assets and privacy protection, professionals with dedicated experience in fraud and risk prevention should implement internal controls. Family members and trusted professional staff should be the only ones with access to the family’s personal documents and account information.

Premier Family Office Solutions

No two families are the same, and your family office should reflect the values and objectives of your family. Whether it’s providing back-office functions for personal and business needs, or coordinating transactions and communications among your team of advisors, a family office should provide you with good financial health and a greater peace of mind.

High-net-worth clients around the world count on the DB Family Office Services team at Daszkal Bolton to meet their complex interests. Our comprehensive range of services are designed to assist our clients in managing their financial lives across generations. As the family’s chief financial officer, we ensure that all of the financial advisors are working toward the same goals and objectives.

For more information about DB Family Office Services, contact Jennifer Ridgely, Partner, at 561-886-5205 or email Jennifer.

DB Family Office Services, Partner/Principal, Strategic Alliances

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