Please Define "Family Office"
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
| What does that mean? Someone mentioned part of their monthly budget as contributing to "Family Office" |
Anonymous
Ask them? |
Anonymous
| It's a financial services firm dedicated solely to a single family or a small group of families. They handle all things financial for the family: investment management, taxes, trust management, sometimes banking. |
Anonymous
| Rich people stuff |
Anonymous
|
They also pay the family’s bills.
We have a customer (well known name) whose credit card bill goes to the family office. |
Anonymous
Usually the investments or the patriach/matriarch family contribute money to the Family Office. The family takes out money for things. The investment team invests, the accountants do cash flow obligations, and the tax team does the family taxes and transactions too. |
Anonymous
|
They do different things based on the family but it’s basically when you have significant joint assets or assets in trust for an group of people and you want to have your own financial staff for investment, philanthropy, etc. Like they might help coordinate estate planning too.
It’s all services you can get elsewhere but some families want to have their own employees and some don’t. I think it has also just become a code word for high levels of multi-generational wealth that people like to drop. But there are no rules: it could be one part time person or a team of 20 bankers. If someone has a family office in their monthly budget, that suggests to me that someone has demanded that beneficiaries pay into the family office but it’s probably just an exercise of sending back money that was distributed to them anyway. |
Anonymous
| Is rather meet the guy taking money OUT of the family office for trips and homes and fun. |
Anonymous
|
An invetment entity tied to the family's wealth. Traditionally took the form of a 'single family office', which is funded by a single family and has its own investment staff.
At the richest end (Waltons, Bill Gates, Michael Dell, etc) it takes the form of a large investment firm with a bunch of employees who work to invest/manage the billions of dollars of family wealth. Investing in whatever the family wants - stocks, real estate, pe, etc. The less wealth the less employees. More recently financial advisor firms have started advertising as "multi-family offices", which do the investing as a third party for multiple/dozens/hundreds of families. |
Anonymous
| It's like a corporate C suit -- but there isn't a corporation it is a rich family with many business interests. The family members are like the shareholders or partners or something in between depending. |
Anonymous
This. 🙂 |
Anonymous
this part makes zero sense. You either misheard or miswrote. |
Anonymous
Lol |
Anonymous
| Thank you! |