Family Office
Over the generations, thousands of wealthy American and European families have learned to rely on a centralized office to manage their financial affairs, plan for different family generations, and coordinate with other trusted advisors to shelter against inconsistent advice.

Coordination and Management
Effective financial coordination and management is the ultimate work product of a successful family office. Planning and follow through – short-term and long-term – can improve a family's overall financial welfare and maximize the advantages of its assets. The greatest value of a family office is to coordinate all of the various professional disciplines necessary to manage the financial affairs of a family.

The assets of the family are much more efficiently and effectively managed by one overseeing organization. The determination of an appropriate asset allocation and investment management strategy is done with a complete understanding of the family objectives and financial situation. Since the family office pays the bills, manages the insurance, and prepares the tax returns, it can more effectively manage the cash and earmark tax related items as well as properly and timely insure assets of value. Since it manages the investments, it can more efficiently liquidate assets for spending taking into consideration the specific tax consequences of each family member. The family office with its complete knowledge of the family and its objectives enhances the estate planning process and can act as an intermediary between the family and estate planning attorneys. The best asset for each particular estate-planning vehicle can be effectively selected, since the family office manages all of the liquid and illiquid assets of the family.

Reasons For a Family To Join a Family Office

• Sale of business generates substantial liquid assets.
• Family's financial assets grow to a level that requires full time professional management.
• Time required by family member/s to manage family's personal assets is detracting from effective running of the business--and the business is at risk of suffering.
• Family member/s want to separate management of their personal financial assets from those of the business for purposes of confidentiality.
• Family has become multi-generational; expertise/involvement of founding patriarch/matriarch is no longer available; next generation not willing/capable of taking on asset management responsibility.
• Needs of growing number of family members, requiring increasingly diverse asset management services, can no longer be effectively met by family's existing resources.

• What are the family's attitudes toward money? Where do they come from?
• Do all family members have a Durable Power of Attorney for Healthcare? – Is it current and in the correct state?
• Have you planned for the children's physical and financial welfare (including coverage of essentials)?
• Do all family members have an estate plan that describes what should be done with their assets?
• Are you philanthropically inclined? Is your plan clear?
• Do you have a plan if you inherit an operating business?
• Do you know what you need in order to feel financially secure?
• What are your attitudes toward the family business or family office?
• Does the family understand the working relationship with your professionals? Financial advisor? Accountant? Attorney? Insurance consultant? Banker? Trust officer?
• Have all of the above been adequately communicated to those who need to know?

• What are the family's core values? How important are they in planning for the future of the family and the business?
• What are the family's long-term and short-term objectives as a family unit?
• What are the objectives of the family's estate planning? Tax minimization, next generation, or dynasty?
• What are the long-term and short-term investment objectives of the family?
• What are the long-term goals for operating the business, both for the business and for the family?
• What are the long-term goals for the family office?
• Are regular family meetings important and if so, for what purpose?
• How should future generations be educated about the family's values and objectives and the family business?
• How does philanthropy play a role in the family's objectives?
• What issues are the most important or urgent to the family?

• Financial Statements: Review Cash Flow Analysis, Statement of Changes in Net Worth, Statement of Net Worth: Comparison of Market Value, Statement of Net Worth: Comparison of Cost Basis
• Investments: Report on the Status of Investments, Review Asset Allocation Analysis, and Make New Investment Recommendations
• Estate Planning: Review Existing Estate Plan and Tax Law Changes, Discuss Child Guardianship, Review Durable Power of Attorney for Healthcare Issues
• Insurance: Review Personal, Property, Business, Life, and Medical Coverage
• Operation of ABC Corporation: Management Issues, Financial Statement Reporting
• Review of Tax: Review of Returns, Projections, and Positions Taken
• Philanthropy: Discuss Site Visits, Review Grant Proposals, Decide on Contributions, Discuss Mission Statement