Family Office- What You Need To Know

Most rich families are often faced with peer pressure, whether to set up a family office or not. Like vacation houses and personal air travel, starting a family office seems like what mates and neighbors do. If your business and career have made you rich, someone close to you might offer the option of starting a family office. You can also look for UBS Global family office through various online sources.

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Whether or not such an organization is good for you is a starting point for families asking them­selves the question. However, implementing the idea is a longer topic that should be discussed with an experienced consultant.

Here are some categories of family offices:

Traditional family office.: The concept is clear. A wealthy director creates a lawful entity and then hires employees to invest and save the family's wealth, handle the family's wealth, and support their lifestyle.

Multi-family office: The rapid development of the family office goes hand in hand with creative new interpretations. One of the most basic is the multi-family office. 

These external companies are supposed to perform most of the functions of a full-time family office: They help define investment strategies, perform due perseverance on private investments, support tax, and real estate planning, interact with investment leaders, and advise on family management. 

They charge a fee, usually a percentage of the total net worth, and have dozens of customer families. This model is less expensive than a traditional family office, but because you're sharing resources with other families, they don't have the same controls like a traditional family office.