Protecting and Preserving Family Wealth: Financial Controls and Education

Right now, Baby Boomers are retiring at a rate of 10,000 per day, increasing to 12,000 per day within 10 years. These retirements are having a major impact on succession planning, companies being sold, and transfer of wealth. It is also creating a very important need for protecting and preserving family wealth. As a result, family office services are playing a major role in addressing that need.

Traditional family offices are created to provide an effective approach to overseeing and managing family wealth and investments. Family offices serve as the contact point for the family, facilitating and overseeing the work done by other third-party advisors and service providers.

Family office services often include investment management, estate planning and wealth transfer strategies, tax services, family meetings, administrative services and lifestyle management.

Over time, two main types of family offices have emerged. First is the single-family office, which is the traditional family office that serves as an advisory and wealth-management firm supporting one high net worth family.

Second is the multi-family office that serves multiple families. The multi-family office is becoming more popular in light of family wealth migrating to succeeding generations. One office serving multiple families is less costly and adjustable to each family’s needs.

Some family members (children, grandchildren, and beyond) may not have the financial experience, understanding or discipline needed to protect and preserve (or, more importantly, build on) recently acquired wealth. Using guidance based on the wishes and intentions of the family, and providing support for the following generations, family office services are a key part of preserving and protecting family wealth.

In order to be effective, there needs to be clear and thorough communication between the family and their family office provider team. Discussing and deciding the policies, plans and goals that will guide all actions and decisions is the right place to start. Once that is done, consistent communication needs to continue in order to establish the right foundation for current and future success in the relationship, and results of the family office efforts.

Price CPAs provides family office services for both the single-family and multiple-family situations. If your family is in the process of considering how best to protect and preserve family wealth, our family office services may be of value to you. To schedule an appointment to discuss the possibilities and related details, contact us through our website (http://www.pricecpas.com/) or call us at 615-385-0686.

Brett Henry, CPA, MBA | Accounting Manager