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Family Offices, the Best Wealth Management Structure there is
The paradox of great fortunes is that to achieve them requires an impressive amount of work, effort and intelligence, but losing them requires very little effort. All individuals with significant wealth are aware that it is almost always more difficult to maintain the fortunes they have made than it was to make them in the first place.
That is why wealth management strategies exist. These are strategies that, through the use and combination of different legal structures, allow investors or groups of investors to protect the fruits of their labor against almost any situation.
Wealth management and investment strategies are especially important when we are talking about fortunes that will be passed onto future generations. And it is also in these cases where it is essential to have the right advice to create the right legal structures to avoid substantial or total losses.
The world of family fortunes can be complex. The combination of legal and tax frictions and family relationships is a difficult sea to navigate on your own or with regular advisors. These occasions require experts to help you operate a family office correctly.
What is a Family Office?
When we talk about a Family Office, we are referring to a private legal entity or a company dedicated solely to managing the wealth assets of a family (or several, in some cases). In principle, Family Offices solve two of the major problems faced by wealthy families: the coordination of their investments and succession strategies.
You may be thinking that a Family Office is not much different from an investment fund, but nothing could be further from the truth. A regular wealth management firm works by prioritizing its trading volume rather than the quality of its operation. In other words, they are not really prepared for the level of hyper-personalization required to manage a large family fortune.
On the other hand, a Family Office has the opposite approach: quality over volume. And so they solve the two problems mentioned above. These structures allow all the members of a family to invest their wealth as a single unit, which reduces costs and significantly increases the cohesion and efficiency of investments.
A Family Office then is a company that manages a family's assets through a service charter that depends on the plans, ambitions and preferences of the family members. This is where the ability to customize shines.
These structures are usually made up of experts in wealth management and investment strategies, accountants, legal specialists and tax optimization experts. We mentioned before that Family Offices have a menu of services that varies according to the needs of each family, and while that is true, the general functions of Family Offices are generally the same:
- Maximizing family wealth: wealth growth is part of every Family Office and this is achieved through investments in stocks, bonds, private equity, venture capital, real estate investments, different business structures, investments in art and collectibles among other investments.
- Wealth management: from reviewing the structure and needs of the family to the design of investment and succession protocols that facilitate generational succession.
- Managing relevant family relationships: the activities related to this function can be as extensive as the family requires. The basics of family relationship management are devising legal and tax strategies for each family member, but families with the largest estates generally include insurance management, charitable initiatives, lifestyle management and even managing some extra-family relationships on the list.
How to Start a Family Office
It's no secret that high net worth families today face greater risks than at other times in recent history. Anti-business regulations, uncontrolled money issuance, rising taxes and the popularization of authoritarianism in major jurisdictions around the world set the perfect ingredients for the next big economic crisis.
In this context, creating a financial shelter is a must for every family with considerable wealth.
Nevis is a wealthy island part of the British Commonwealth that is located in the Atlantic Ocean. Thanks to its British-inspired robust privacy laws, Nevis is known as one of the last frontiers of financial freedom, a jurisdiction where many wealthy families and individuals are coming to safeguard their legacy.
Also, Nevis citizenship by investment program is known as one of the best programs of its type in the Americas. Its banking sector is robust thanks to secrecy rules and British standards.
However, the cherry on the cake is the Nevis Multipurpose Foundation, one of the most extraordinary wealth management tools on Earth, providing intergenerational wealth protection forever. This legal figure is extraordinarily flexible, as it can be operated as a trust or a company, depending on the objective of the client.
Settin up your Family Office in six steps:
1. Obtain a Nevis passport to take advantage of the tax and legal advantages of this jurisdiction.
2. Create a multiform foundation in Nevis, which is one of the best structures in the world when it comes to asset protection.
3. Create an LLC in Nevis to function as the operational structure of your multiform foundation.
4. Design your tax strategy.
5. Open a secure and confidential bank account to operate your LLC through your multiform foundation.
6. Design your wealth management strategy.
There's also the possibility to create customized structures according to your needs. For example, opting for a Vanuatu passport and designing your tax strategy in Panama would be no problem at all.
All About Building Your Own Family Office at Our First Conference of 2022!
2022 has already begun its march and at Mundo we have an annual agenda of conferences prepared to inform investors, entrepreneurs and high net worth individuals about all the strategies they can implement to protect their wealth in the face of growing threats from major governments.
At our first conference this year we will teach everything you need to know to set up a Family Office that will allow you to protect your wealth for generations to come.
Those who attend our first conference will learn:
- The reasons why any entrepreneur and investor (even middle class) needs to have a financial plan B due to the global context and threats present in our current economy.
- How to create an impenetrable wealth management structure that can be maintained across generations in just 5 steps.
- What are the wealth and investment management solutions and strategies that the world's leading Family Offices use to maximize wealth.
- What are the ways to get a Family Office for the same price as a citizenship by investment program.
At the moment we are close to 1000 attendees.
Disclaimer: The information contained in this article is for informational purposes only and does not constitute financial advice or recommendations. Investing in financial products or cryptocurrencies involves risks, and you should be aware of the potential risks involved before investing. The content on this website is not intended to be a solicitation or offer to buy or sell any financial products or services. The information provided does not take into account your specific investment objectives, financial situation, or needs, and should not be relied upon as a substitute for professional financial advice. You should seek independent advice from a financial advisor or other professionals before making any investment decisions. Please be aware that the legal status of cryptocurrencies and other financial products may vary in different jurisdictions and may be subject to regulation. It is your responsibility to ensure compliance with any relevant laws and regulations governing the sale and marketing of financial products and services in your jurisdiction.
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