Most family businesses and companies achieve success thanks to an excellent implementation of well-executed and analyzed financial strategies from the beginning. This, with the objective of expanding and adding new family generations and thus protecting each of its members.

For this, it is necessary to have an excellent administration, planning and adapting each one of the investments, without losing sight of the family objectives and goals. It is very common that in order to achieve this, they turn to a financial advisor who can guide them in an adequate way to have a broader and long-term view.

The conflict arises when we talk about a family investment or a broad legacy and a wide number of family members that, in turn, increases. This creates the need and urgency to have a better organization of that legacy, the establishment of rules of succession, liquidity and trans actionality to avoid that those who make up the family or legacy don´t see for the individual good, but that they see what is better for the family and for the endurance of the legacy in general. This is where the need for a Family Office arises.

The best solution for this type of companies is a Family Office

Family Office is a private company that is formed by various specialized advisors, such as public accountants, real estate brokers, lawyers, among others, with the purpose of managing wealth in both financial and non-financial assets, based on investment strategies, taxation, investment funds, pension plans, real estate management, etc.

A Family Office will always start with a thorough analysis of the family’s wealth management and family structure followed by a future investment strategy and offering  legal and tax advice to protect each family member.

Based on the last one, it is important to be clear about your company’s objective in order to approach a Family Office. There are two main services for which companies decide to approach it.

  1. Wealth management: Includes investment strategies, tax planning and supervision of tax compliance. These are provided by professional experts in foreign investments in order not to fail in the obligations imposed in other countries. 
  1. Inheritance management: If you are looking to leave a legacy, this service will help you to prepare the next generation to receive it in an active and stable way through a family trust administration, minimizing inheritance and gift taxes.

One of the main benefits that can be found with the addition of a Family Office to the company will be the new administration of the activities that are carried out internally to increase its development and boost its growth thanks to the union of family and business ties.

For this new project to be successful, it is important to maintain good communication among family members, an excellent definition of the organization chart, financial vision and definition of objectives.