Introducing the single family office

This form of office looks after the needs of a single family. Taking into account that the number of individuals in a multi-generational family could vary from a couple to hundreds of people (even exceeding a thousand), and that family offices are intended to serve multiple generations. A family should consider establishing their single family office only once the complexity of the family and/or the complexity of the wealth become too much for the family to handle themselves. A rough estimate of the wealth required to justify the cost of running a family office is in excess of £200m.

 When a family gets to the point of feeling incapable of handling their own affairs a single family office is set up.  This may be because the assets have become too complex to manage, that conflict between family members becomes untenable, or that upcoming generations are eager to start taking responsibility alongside the current generation.  The family then appoint professionals who are able to support the family and provide assistance where necessary. 

 In general terms, some of the more common functions professionals in a single family office will attend to are:

• Finances and cash management for the business and for individuals in the family.
• General legal assistance including compliance and anti-money laundering processes and procedures
• Investment services and advice for both the business and individuals in the family.
• Fiduciary services such as the management of trusts, companies and foundations. 
• Family and Corporate governance including arranging family meetings, branding, and dealing with privacy issues and cyber security. A vital aspect is ensuring   that the corporate governance of the family business dovetails with the governance structure of the family.

Next: The multi-family office