Private wealth management companies that specialise in working with ultra-high-net-worth individuals are known as family offices. They offer services in the provision of investment, planning of estates and many more. Continue reading to know who can establish a family office Dubai.
What is a Family Office?
It is a company that handles the wealth and financial issues of UHNWIs i.e. high net assets individuals including:
● Investment management
● Estate planning
● Philanthropic activities
● Financial planning
● Tax advisory
Family offices provide a complete solution for the family’s financial affairs. They strive to sustain and increase the family’s wealth throughout generations.
Who Can Set Up a Family Office?
Only some people can establish a family office including:
- Ultra-High-Net-Worth Individuals (UHNWIs)
UHNWIs are defined as having a high net worth. They imply high levels of financial literacy and often seek individual approaches. Dubai family offices address their multifaceted financial requirements.
- High-net-worth individuals (HNWIs)
HNWIs are people with high buying power and a good amount of financial assets. They can also use family office services. Such people do not necessarily require the establishment of a comprehensive family office but can create a sub-form.
- Business Owners
Family offices are usually set up by successful business people and businessmen with large amounts of money. This is especially useful in handling individual as well as corporate money affairs. The family offices may also help in the planning for succession as well as handling of business-related investments.
- Inheritors
Family business heirs may want to consider establishing a family office as it can help manage large amounts of wealth. It assists in the management of the new wealth and its proper conservation for the next generations. Family offices act as professional advisors for the management and investment of inherited fortunes.
- Family Groups
A family office can be established when several family members contribute their funds to the business. This is often seen in families where pooling of resources helps in wealth creation and management among various members. It offers a focal point for the management of family wealth.
- Individuals with Philanthropic Goals
Larger and more complicated philanthropic objectives may also be handled through the family office. Many family offices carry out structured and efficient philanthropic management.
Why Partner with a Professional Agency?
Family offices are hard to handle alone. One can seek the help of an agency that provides family office trust services to enjoy the following benefits:
- Expertise and Experience
There is established knowledge and experience on the side of agencies. They make sure that the family office setup of the business complies with all the set legal provisions.
- Tailored Solutions
Most of the professional agencies exist to cater for the specialized needs. They offer customised financial plans and services.
- Efficiency and Time Savings
Agencies act as a centre for organising the actual setup process and minimising the time and cost required. They assume multiplicities of roles to enable families to perform their fundamental functions.
- Risk Mitigation
Professional guidance reduces risks. Departments make sure that requisite governance and risk management policies are complied with.
- Establishing Trusts and Foundations
Agencies help to organise family trusts and foundations. They assist in governing and preserving the family’s fortune.
To conclude, establishing a family office in Dubai can be one of the effective solutions to oversee large assets. Some of the potential users of family offices include UHNWIs, HNWIs, business owners, inheritors, and family groups. Working with a professional agency contributes to the efficient setup, adoption of suitable solutions, and proper management of wealth.
