Isle of Man: Why Are Family Office Services Becoming So Popular?
Family Offices are private wealth management advisory services offered to ultra-high net worth investors to centralise focus and control over family finances, legal, tax and administration issues. It is an outsourced solution to manage the financial and investment affairs of wealthy individuals or families. It works to provide the best solution for building, preserving and transferring family wealth onto future generations.
The first known family office was setup for the Rockefeller family of New York in the 19th Century. The family, faced with increased wealth management concerns, began hiring trusted advisors with certain expertise to assist with the management and protection of their family’s interests. Thus the concept of family office was born.
Family Offices are most commonly utilised because assets have grown in size and complexity, demanding full-time professional management. The world’s most wealthy families establish Family Offices to ensure their wealth is suitably preserved for future generations.
One of the main attractions of the use of a family office for wealthy families is having one central source for information and advice on the family’s financial matters. Having a dedicated team of professionals who are completely focused on the client’s goals and financial aspirations in a completely confidential manner who can ensure wealth management and future proofing of complex structures to ensure the wealth is managed effectively for future generations.
One of the most important parts of any family office is to consolidate all relevant financial information into one report and coordinate with various financial institutions to establish an overall investment strategy. This saves valuable time and resources for family members and can focus the mind on the main goals for the family’s wealth and is a pragmatic way to manage overall investment risk.
A family office may also act as a connection between family members and as a trusted advisor for younger generations. Research has shown that many wealthy families are not able to preserve their wealth for longer than three generations. This is often caused by a lack of strategy within the family or a lack of communication between the family members. A family office can build long-term relationships with all family members and involve and educate the younger generation on wealth management matters. As the family office is a third party, it is often easier for family members to discuss financial matters with the family office instead of dealing directly with each other.
It has been said that the most important considerations of any family office are a professional comprehensive service, discretion and extensive wealth management experience and at CCW we can offer all three.
If you are considering a family office for your family or are a trusted advisor who is looking to move a family office which is currently in existence we would be happy to discuss your needs. Crowe Clark Whitehill have looked after families and their needs for over 30 years, our people are highly skilled and qualified client professionals. We have extensive experience in the management of international structures and through our network we have links to professional advisors in almost every jurisdiction around the globe.
Crowe Clark Whitehill’s services are uniquely crafted to give each family exactly what they need. We will take the time to get to know you, your aspirations and concerns. We understand that there is nothing more important than family and that you will be in trusting personal matters to us, we will work with you to gain understanding and build long term relationships.