Outside affluent circles, the phrase ‘family office’ is not well-known. Many high net worth individuals (HNWIs) are also unaware of the term and the potential benefits.

The basic concept? A family office is a relatively small organization dedicated to managing and growing the wealth of a family (or, in the case of the relatively new ‘multi-family offices’, several families) in a far more personalized way than is possible through standard financial institutions. HNWIs and families face a unique set of challenges, including the management of large and complex portfolios, succession and inheritance issues, educating younger generations in financial matters and those of the family in particular, and philanthropy.

Family offices range from one family member with a book-keeper managing family financial and legal matters from their home, all the way to a collection of legal, financial and accounting professionals working in a dedicated office and managing all financial and related matters for the family. The office may perform simple tasks such as making travel arrangements and paying family bills, or it may take care of sophisticated legal and financial matters.

Pragmatic issues of investment management, administration and compliance are usually a major factor in the choice to establish a family office, as is the need to create a structure and machinery that will nurture the family assets after the current generation is no longer present, willing or able to do it themselves. It’s also important for an office to provide a forum and structure that encourages and facilitates communicator. There are plenty of cautionary tales throughout history of families that fell or grew apart over disagreement over the management of family wealth.

The family office comes in many shapes and sizes, and is essentially based on relationships formed between the family, its advisors and its service providers. The one unbreakable rule of family offices is that they exist to serve and enhance the interests of the family, proactively - within that framework, the specific duties and responsibilities vary tremendously. a customized, devoted relationship between a family, its advisors and service providers. Maintaining a family office requires the commitment of resources, but should deliver benefits that far exceed the costs.

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