Q: What is the purpose of a family office?
A: The purpose of a family office is to provide comprehensive support and guidance to high-net-worth families in managing their wealth and addressing their financial needs. Family offices offer a centralized hub where families can access a wide range of services and expertise, allowing them to navigate complex financial matters effectively and achieve their short- and long-term goals.
Q: How are family offices structured?
A: Family offices can have different structures based on the needs and preferences of the family. The two main types are single-family offices (SFOs) and multi-family offices (MFOs).
- Single-family offices (SFOs): These are dedicated to serving a single affluent family and are typically established when a family’s wealth reaches a significant threshold. SFOs provide personalized services tailored to the specific needs of the family.
- Multi-family offices (MFOs): MFOs serve multiple wealthy families, providing shared services and pooling resources. This structure allows families with lower levels of wealth to access comprehensive services that may be more cost-effective than establishing individual SFOs.
Q: Do family offices provide legal or accounting services?
A: Family offices may provide coordination and oversight of legal and accounting services, but they typically do not offer these services directly. Instead, they work closely with external professionals, such as attorneys and accountants, to ensure that the family’s legal and accounting needs are met. The family office acts as a central point of contact and helps coordinate the efforts of these external service providers.