The Need For A Virtual Family Office

The Family Office is an American concept that acknowledges the fact that wealth tends to be accumulated and passed on through families and dynasties. It originated as a real company office with a large staff that operated every family member's financial affairs, including paying accounts and expenses.

"Shirtsleeves to shirtsleeves in three generations" - 19th century saying

The more modern concept is that of a virtual family office, where the financial affairs of several generations of the same family can be integrated by a financial adviser who will devise strategies which extend beyond the lifetime of the primary client.

Major objectives of a virtual family office may include:

• Enabling the primary investor to make plans for the management of family wealthÿ that extend beyond his or her lifetime
• Ensuring stress-free financial security for the primary investor in old age, or ensuring that a spouse who survives the primary investor has complete financial security
• Estate planning in order to minimise death duties and inheritance taxes
• Establishment of family trusts and other administrative structures which will preserve family wealth until younger generations have reached the age and maturity to manage their own affairs
• Ensuring the fair distribution of family wealth among future generations.

It may be advantageous to work with advisors who integrate accounting and investment financing services with their mainstream financial planning role, so that are able to assist you in providing family financial advice that can include and benefit future generations.