Salman Rushdie once famously said, “a family is a company.” And like any good company, a family needs a sound structure and efficient operations to function at its best. It’s no wonder, then, that an increasing number of ultra-wealthy families are turning to family offices to help them manage their businesses and preserve their legacies. But what does a family office do exactly? Aron Govil answers.
What Does A Family Office Do? Aron Govil Answers
Family offices provide a comprehensive range of services to wealthy families, says Aron Govil. These typically include financial and estate planning, asset management, investments, administration, and tax services. They often also provide lifestyle management for the family members, arranging travel, education, and leisure activities.
Financial and estate planning involves ensuring that the family’s assets are managed in a way that meets their goals while minimizing taxes. This generally includes creating an overall financial plan with strategies to help protect the wealth against threats such as inflation or market downturns. Estate planning ensures that when a family member passes away, their assets are distributed according to their wishes.
Asset management is another core service provided by family offices. This includes overseeing all investments, from stocks and bonds to real estate and private equity. The family office evaluates the risks of each investment and makes sure that the portfolio is well-balanced in terms of risk tolerance, return potential and liquidity needs.
When it comes to administration and tax services, family offices take care of all the paperwork for their clients. This includes preparing tax returns, managing accounts, paying bills, handling legal documents, updating records, and keeping track of insurance policies. They also provide advice on how to structure entities such as trusts or companies in order to maximize tax benefits.
Finally, family offices can offer lifestyle management services such as arranging travel plans or booking luxury accommodations. They can manage education expenses and assist with college admissions processes or finding private tutors. They can also recommend leisure activities or secure tickets to concerts, sporting events, or other attractions.
Overall, family offices provide a comprehensive range of services to wealthy families. They can help with everything from financial and estate planning to asset management and lifestyle management. According to Aron Govil, these services are tailored to the specific needs of each client so that they can make the most out of their wealth and enjoy their lives as comfortably as possible.
Aron Govil’s Concluding Thoughts
Most family offices are private companies that provide financial, legal, and other services to a single wealthy family, says Aron Govil. The family office is often staffed with former bankers, brokers, and lawyers who manage the family’s investments and handle tax and estate planning. Many family offices also have their own in-house accounting and compliance departments. Family offices can be contrasted with wealth management firms, which provide similar services to many different families or individuals. While most wealth management firms are public companies, few family offices are publicly traded.