Publications
Author / Peter Lu‧呂旭明會計師、Max Lu‧呂嘉昕信託師
U.S. Trust and Estate Planning 美國信託規劃實務(英文部分)
Chapter 5 The Rise of the Global Family Office
What is a Family Office? How does a Family Office typically add value?
A Family Office is a private wealth advisory entity established by an individual or family to manage wealth and provide a variety of personal and financial services. Family Offices serve high-net-worth individuals and families, offering a comprehensive approach to managing their financial affairs and providing services beyond traditional wealth management. Family Offices typically provide some, if not all, of the following services:

1. Wealth Management:
    • Investment management, asset allocation, and risk management.
    • Property management, rent collection and lease renewals.
    • Developing and implementing investment strategies aligned with the family’s goals and risk tolerance.
2. Tax Services:
    • Tax planning and compliance.
    • Tax risk mitigation and analysis.
    • Strategies to minimize tax liabilities and maximize tax efficiency.
3. Legal Services:
    • Estate planning, including the creation of wills and trusts.
    • Legal advice on establishing and managing closely held family businesses.
4. Succession Planning:
    • Developing plans for the transition of wealth and business to the next generation.
    • Ensuring the continuity of family values and objectives.
5. Risk Management:
    • Evaluating and managing risks associated with the family’s assets and activities.
    • Managing the family’s risk exposure to various incidents and investments.
6. Insurance Management
    • Comparing, procuring and managing insurance policies.
    • Planning for liquidity to pay estate taxes and other expenses, ensuring that the estate can pass to heirs without being diminished.
7. Administrative Services:
    • Handling day-to-day administrative tasks, such as bill payments, financial reporting, bookkeeping, and record-keeping.
    • Managing household staff and personal affairs.
8. Lifestyle Management:
    • Personal services such as travel arrangements and luxury purchases.
    • Assistance with health and wellness, education, and other personal needs.
9. Philanthropy
    • Providing advice on philanthropy, charitable giving, and legacy planning.
Family Offices can provide the family with the following benefits:
(A) Customization: Tailored solutions that align with the family’s specific needs and goals.
(B) Control and Privacy: Greater control over investments and decision-making, with a high level of privacy.
(C) Holistic Approach: Integration of various aspects of wealth management, from investments to lifestyle services, under one roof.
(D) Long-Term Planning: Focus on long-term wealth preservation and intergenerational transfer.

In essence, a Family Office acts as a centralized entity that coordinates and manages all aspects of a family’s wealth, aiming to preserve and grow their wealth while providing a suite of bespoke services to meet their unique needs.