What is a Family Office
– here are answers to the 7 typical questions
In Assure Wealth, we have a team that has the black belt in administrative and accounting services. The team solves a myriad of tasks for Danish families with significant fortunes. These are services popularly called Family Office services.
We often face questions about what a Family Office is. We want to give an insight into the competencies of a Family Office. That is why we have brought together the seven questions that are going on again.
The answers give our CEO Klaus Lauenborg Breitenstein.
1 - What is a Family Office?
A Family Office is a private service that wealthy families use to handle everything related to administration and accounting. You could call it a form of financial PA, that is, a Personal Assistant.
2 - What is a Multi Family Office?
A Multi Family Office is a business that serves a number of wealthy families with Family Office benefits.
The alternative is a Single Family Office, where each family has its personal staff to handle the range of tasks associated with managing a vastly branched fortune.
The advantage of being part of a Multi Family Offices is that you get access to a wide range of competencies, but only pay a small part of the cost compared to hiring your own employees in a Single Family Office.
3 - What services does a Multi Family Office provide?
A good Multi Family Office assists with all practical administrative tasks, and the typical Multi Family Office services are:
- Posting and sales tax settlement
- Accounting preparation for accountant
- Close interaction with the client's Private Banking advisors
- Coordination with lawyers and banks in connection with generational change, prenuptial agreement or will
- The administrative tasks of the world. Material for – and communication with the customer's accountant and other business partners – is a classic service.
Families with large fortunes often also benefit from their Multi Family Office having a good reporting solution, which can gather data from customer banks and managers and continuously provide an overall view of the complex wealth, both the listed portfolios and the unlisted investments, such as Private Equity.
In other words, a Family Office requires a broad field of competence in IT, accounting, financial literacy, and administration. No administrative or accounting task is too large or too small to ask your Multi Family Office to solve.
4 – Who typically chooses to outsource services to a Multi Family Office?
These are wealthy families who want to be free of administrative and accounting tasks that outsource the tasks to a Family Office.
They think it is nice and safe that there is always someone who has the full overview and who you can call and ask questions like:
"How much money was it now that I shot into the latest investment project?" or "We've got an offer of insurance, will you obtain a benchmark?"
5 - Do you get a permanently allocated personal assistant in a Multi Family Office?
A professional Multi Family Office provides a dedicated team that includes accounting, administrative, and IT skills.
As a customer, you have a permanent contact person, and the team takes care of all the tasks.
6 - What are not part of the benefits of a Family Office?
At Assure Wealth, we do not provide investment advice, but we are happy to provide a general second opinion based on the broad insight we have in the area of administration and reporting.
7 - How much does it cost to be a customer in a Multi Family Office?
As a Customer of Assure Wealth, the customer pays a fixed monthly fee for the service. We calculate the price based on the complexity of the services the customer wants from the team of Multi Family Office specialists.