New Ways to Manage UHNW Family Fortunes

New Ways to Manage UHNW Family Fortunes

The rich continue on their path toward more of the glittering same: last year, the assets of high-net-worth families exceeded $70 trillion for the first time in history.

With family wealth now in the metaphorical stratosphere, it is clear that new solutions are needed to successfully manage their complex holdings.

Successful family offices need to apply the “total family balance sheet” approach, as our linked author describes it, if they are to master the task. All family assets must be cataloged and included in the plan: businesses owned, tangible and intangible assets, traditional securities, real estate, art works and even sentimental family treasures. Nothing should be excluded from the planning process.

The family itself must be a solid partner. They need to agree on a comprehensive strategy for protecting their assets, making them grow and preserving them for future generations. A tax solution, unique to the family and its holdings, needs to be carefully crafted and administered by specialist lawyers and accountants.

Since the 19th century, many ultra-wealthy families have relied on the family office concept, pioneered by the Rockefellers, to manage their assets. The model is a successful one, but challenging: the complexity of modern asset structures and global holdings, combined with the demanding time pressures associated with administering a family practice, can be daunting.

The complexity of family practices has led to the creation of organizations comprising exceptionally strong advisory teams, coupled with powerful administrative technology and administrative structures. Some family practices have been able to attract clients from outside the family and in some cases, a multi-family office (MFO) has emerged. These evolutionary processes remain well underway.

For more information, please read:
Multi-Single-Family Offices Are the Future for UHNW Families | Wealth Management


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