A family office goes by many names: single family office, private family office, or a management company for one family. The idea is the same. It is a structure that manages the capital, assets, and legal matters of one family or several families.
In this series we will cover who needs one, what it costs, and the mistakes people make most often. We start with the main question: do you need one at all?
5 questions to ask yourself before creating one
- How much capital does the family have? A full family office is usually discussed for tens of millions of dollars and above. Smaller amounts have simpler formats.
- What assets do you hold? A business, real estate, securities, and private investments each need different management.
- Who will make decisions? One owner, spouses, or several generations of the family.
- How will capital be passed on? Inheritance and business succession are best planned in advance, not after the event.
- How much are you ready to spend each year? A team, lawyers, accounting, and reporting all cost money.