When the questions arises as to how much in liquid assets you need to establish a Family Office, many people say at least $100MM, however that is not true. Every Family Office is different and a lot depends upon what the Family Office will actually do for the family.

Another issue is, should it be based upon liquid assets or on total net worth? Many families have their assets tied up in their operating businesses and real estate.

With technology having such a significant impact on all businesses including family offices, and the growth of outsourcing functions to outside providers, it has become more cost effective to establish family offices than previously.

One of the key issues is to determine what the benefits would be of establishing a family office, and would it be cost effective.

Our approach is to meet with each family that is considering setting up a family office and discussing all of the benefits and disadvantages. The benefits include establishing an integrated plan for the family’s financial affairs, investments, wealth transfer strategies, tax planning, estate planning, succession planning for a business, and being able to utilize the services of expert external service providers to preserve the wealth of the family. The disadvantages may be disputes that may arise among the family members, the cost of running a family office and getting the majority of the family members to participate and agree on key issues such as governance, investment philosophy, succession planning etc.

If you are considering establishing a Family Office, please feel free to contact: Michael Rosenblatt, President of The Quest Organization and of FON Search at 212-971-0033 or Michael@questorg.com

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