Establishing a Family Office Structure

Family Office

CLIENT SCENARIO

  • Wealthy entrepreneur with a large portfolio which includes global business interests, a number of high valued assets (property, art collection, private yacht) and a number of large investments
  • He has a strong desire to acquire more investments in order that they perform to grow the family wealth
  • Now seeking advice on how best to manage and protect his and his family’s interests and assets

Considerations:

In the first instance our team undertook a full review of the clients existing portfolio, along with a full understanding of what his and his family’s future intentions and needs are. Managing a wide range of assets is complex and often will require specialist expertise in order to provide a holistic approach and ensure the correct advice and most appropriate structures are put in place which will both enhance and protect assets now and into the future. We are in a very unique position where the collective strength of the wider Knox group of companies is at our fingertips.

1. Tax Planning

The client sought professional tax advice from experts within the wider group who specialise in tax planning. After clear tax advice was reviewed our team recommended that for succession planning and asset protection reasons, it would make sense to hold his and his family’s assets in a number of different trusts, companies and foundations and this would be best managed under a Family Office structure.

2. Establishing a Family Office

A professionally run family office can successfully avoid the situation where individuals who have built up significant wealth suffer from a depletion of their assets by punitive taxation measures, personal or business disputes or incompetent governance. There are multiple benefits to be gained from the establishment of a Family Office, and are very much dependent upon the needs of the family. But in general can help to generate efficiencies of scale, provide an organisational structure to manage the full scope of a family’s affairs, create a legacy and provide much needed administrative support.

The client proceeded to instruct KHT to implement the proposed Family Office confirming that having one central point of contact to manage all of his affairs, together with the benefits of estate planning and asset protection, sounded ideal.

3. Our Ever Increasing Role

As in all areas of business and investment, things evolve and needs and requirements tend to change. The same goes with families and having built up the relationship and gained a high level of trust, we found the family looked to our team for an ever increasing list of requirements and support. Hence our 24/7 concierge service was developed. In the case here where the family decided to relocate, we were asked to assist with a much broader remit of service requirements in order to ensure a smooth and happy transition for the entire family. We assisted with property sourcing and acquisition, educational requirements, medical registrations, vehicle acquisitions, travel arrangements and much more.

Client Solution

The structure was implemented and has proved to be an invaluable choice for the client and his interests and assets.  Whether it be; acquiring a new high value asset or investment, insuring property, organising valuations or even providing a concierge service, our client is delighted that he has one central point of contact to organise all of these matters, together with having access to family governance advice. Our client feels comforted that the Family Office has full financial oversight and control with qualified individuals protecting his assets for his and his family’s future.

Why Choose KHT?

  • Clients at the centre of everything we do
  • Wealth of experience, understanding and technical knowledge
  • We nurture long term relations with clients and advisers
  • Collective strength of the wider Knox group of companies
Anthony-Page

Speak to our Expert

Anthony Page
Managing Director