What is a Family Office?

What is a family office? What is a family office structure? What is the purpose of a family office? How do you set up a family office? How much do family offices charge?

Singapore family office

Family Office is a private asset management consulting firm serving ultra high net worth (UHNW) investors. They differ from traditional wealth management shops in that they provide a total outsourcing solution to manage the finances and investments of wealthy individuals or families.

Singapore family office structure

This entity, which does not own assets, can only act as the family's assets coordinator. In most cases, it also serves as the family's investment manager or financial advisor.

Purpose of a family office

A traditional single family office is a single family run business. Its only function is to centrally manage significant family fortune. These organizations typically employ employees to manage investments, taxation, philanthropic activities, trusts and legal matters.

Setting up a family office

Before setting up your family office, consider the following five tips.

1. Understand your capital.

2. Delegate responsibilities.

3. Get independent professional family, business and wealth consultants.

4. Clarify your investment vision.

5. Take a pro-active approach to succession.

Family offices charges

Family office costs typically amount to about 1% of total family active assets, including investment portfolios, trust assets, and current assets. Thus, the annual cost of a small family office with $150 million in active assets is around $1.5 million.