The Family Office Practice
Source: Journal of Accountancy
CPA firms are finding significant growth potential in family office services. An increasingly popular idea is to offer these services through multi-family practices.
Often the family practice grows out of tax services for family businesses that lead to investment services. Some firms have become boutique family office service firms. Some have created trust companies.
The typical client has assets (for investment) in the $25 million to $50 million range, enough to require special attention, but not enough to justify its own single-family office. The need for special services may develop after sale of the family business.
Family office services include:
- Investment management and monitoring.
- Tax planning.
- Estate planning.
- Risk management.
- Property management.
- Domestic payrolls.
- Bill paying.
- Property management.
- Charitable and philanthropic advice.
- Teaching children about finance.
- Helping children with budgeting, purchasing a house, prenuptial agreements, etc.
- Leading family meetings.
Services can be provided by a combination of in-house personnel and outsourcing.
Helpful Web sites:
- Family Office Exchange http://www.foxexchange.com/public/fox/welcome/index.asp href="http://www.foxexchange.com/public/fox/welcome/index.asp">http://www.foxexchange.com/public/fox/welcome/index.asp
- Institute for Private Investors www.memberlink.net
From Journal of Accountancy, July 2007. For the complete article, click here, then select the article All in the Family in the July 2007 issue.