Family Office is a service for people having their own businesses. It is a solution of a whole range of issues related to asset management, property, deposits, legal defense and medical service, solution of administrative tasks and organization of comfortable living space as well.
Family Office is based on the principle "Your entrusted administrator". Entrusted administrator is, first of all, a trustee, personal advisor and strategist.
The main tasks of an entrusted administrator are coordination of all elements of the family business and creation of a common strategy which includes planning and development of the family wealth and transfer of the capital to the future generations.
Family office's structure
Financial department the main task of which is united financial and tax planning, tracking of cash flows (monitoring, selection of financial partners), consulting and search of the best tax advisers, choice of effective financial schemes. Financial department will help you to select the most reliable and profitable capital sources and to secure capital preservation and profitability. Risk insurance is an important accompanying element in the activity of Family Office.
A highly professional secretary will take the responsibility for your correspondence, translations, filing, telephone calls, and solution of the current administrative questions.
A punctual and reliable accountant will take care of timely payment of your invoices and bills, daily control of funds expenditure and recommend possible options of optimization and decrease in costs. If you are familiar with the foreign practice, you know how time-consuming it can be (processing of bills, invoices, letters and calls, and so on).
Well-organized office work and accounting will allow you to have a clear understanding of the state of your business all the time.
Legal defense is presented by the best Russian lawyers having a significant experience in the following areas:
Consulting and preparation of opinions and memoranda in legal matters;
Preparation of legal documents necessary for conclusion of various contracts and for realization of business projects with maximum safeguarding of the clients' interests;
Preparation of constituent documents for legal entities of any business forms and legal assistance with the subsequent registration of companies;
Assistance in opening of companies and trusts in territories with preferential tax treatment;
Protection of your interests in court and state bodies.
Real estate management department goes by the principle "Your house is your castle" and one can totally rely on its specialists when purchasing real estate, and not only in Russia. The department's competences allow picking up the best deals in the shortest possible time and on the most beneficial terms, making the purchase of real estate a liquid investment which can be profitable.
The real estate management department will assist you to obtain a mortgage loan, competently consult on all aspects of the purchase, and select the best architects, construction firms, finishers and professional landscape designers. Upkeep of the property is a care of the real estate management department.
A family doctor is involved in personal healthcare of a family, introducing the principles of healthy life style and the ecological standards into the family values.
The family doctor will take care of such tasks for you as:
Prophylactic observation and medical check-up;
Making up programs of health care (fitness, massage, strengthening and relaxing procedures);
Selection of a personal coach;
Preparation of a of balanced nutrition chart;
Services of cosmetologists.
Family Office provides:
Personal comfort is made up of thought-through small things enabling the sense of comfort. First of all, they are:
Selection of the home staff: a driver, a housemaid, a baby sitter, a guard, a cook, a gardener;
Planning of family events;
Help in resolving of difficult situations;
Selection of educational institutions for children and baby-sitting;
Planning of business trips, leisure and accompanying;
Help in shopping, advices on purchase of antiques, pieces of art, jewelry and luxuries;
Assistance in purchase and maintenance of cars.
The origins of the family office go back to the times of antiquity when hired assistants with the functions of managers appeared in families for the first time.
The notion of family office as a model of management appeared at the end of the 19th century at the nascent stage of the industrial capital. In the families which had significant fortunes special people organizing special offices for resources management began to appear. Some family offices started rendering related services for other families that developed into an independent business. Banks and managing companies started to render family office's services.
There are two forms of a family office: offices managing family's assets and multiple family offices managing capitals of several families.
In Russia the market of Family Office services is at the initial stage due to its insignificant scope and volume.
The family office's services are often confused with life style management services: helping VIP clients in selection of a good doctor, teacher and school for a child, travel organizing and so on, i. e. high-quality spending of money is just a component of the Family Office.
But the main purpose of the Family Office is keeping, multiplying and transfer of wealth to the next generations.
What is the difference between Family Office and Private Banking?
Bank is a commercial organization rendering financial services. Family Office is an independent unit having no connection with any commercial structure.
Historically, clients of the family office are representatives of five-seven generations of family capital.
Currently, there are no classic family offices in Russia because intergenerational continuity has not been formed yet. Would-be consumers of this service are the creators of big capital. Now they are concentrated on making money, not on keeping it. The full set of services of the classic family office in Russia is not in high demand so far because of "youth" of capital.
The process of formation of family boards of directors is under way now. However, the most of the fortunes are managed by one person, as a rule, the founder of the capital. After a few generations a family will grow and the number of people taking decisions will increase. A need to manage collectively will appear.
Members of a family have to get together on a regular basis, to hear reports about the state of the capital and make the key decisions collectively. Actually, it is reproduction of the corporate model of management.
The key element of the service is successful transfer of capital to the next generation, in most cases, to future economic leaders of the family, selected from the heirs and ready to manage intellectually and morally.
The generation of heirs in Russia is still in the making. People will have to transfer their property to their successors with the risks which are inherent in this business and it is a big question how the heir will manage the capital that was earned by other people.
For this purpose, special programs for training of heirs exist, within the framework of which the heirs learn how to select financial advisors, to say "no" in response to dubious offers, to form an attitude of care for money.
Family capital is not just the money but intellectual and human potential of a family.