Do we need a family office now?

You have amassed a level of wealth that brings with it a world of possibilities for you and your family. Feelings of security, fulfillment and contentment are certainly not unwarranted.

However, before you crack open the champagne (or perhaps while you’re enjoying some), it’s important to consider the complex set of issues that come with your wealth. The list of issues can be extensive and daunting and has many families asking themselves:  “Do we need a family office now?”The term “family office” is a fairly new one in Canada, but it is a concept that has started to gain some attention and traction. When families begin to create significant wealth, the resources they need to manage and steward that wealth become more complex, and therefore, more experts are needed.

There are a couple of different types of Family Offices. There are Family Offices that only serve one family, and there are also firms that are multi-family offices, where families share the same team of support resources. Canada has several first-level Family Offices, which generally help clients with investment management and accounting. More advanced Family Offices offer clients philanthropic resources, help to develop family councils and family meeting platforms, and provide financial literacy resources for “the next generation.”While navigating investment options and estate plans can be tricky, clients often find that the most complicated thing about wealth are the relationships surrounding money. That’s an area where a Family Office can have a really big impact; they can help to bring everyone together and make sure everyone is working toward a common goal.

That’s also an area where external advisors can help because they bring a different perspective and a unique point of view.  That’s why sometimes the best solution involves supplementing a Family Office with external advisors. Different solutions are required for different families’ situations, but external advisors can sometimes offer additional expertise in certain areas. (For example, we’re often brought in to supplement estate-planning needs.)These different perspectives bring clarity, creativity and understanding. If fostered with a spirit of collaboration, then a virtual team can support a Family Office and bring powerful resources to your unique situation.

That’s something you can certainly toast to.