The skills required to manage family wealth vary considerably from those necessary to generate riches in the first place. Thus, many families entrust financial capital administration to accountants and wealth managers in setting up family offices in Singapore.
Setting up a family office has advantages similar to outsourcing to a suite of advisers or using a multi-family office in Singapore. Here are some tips to think about.
#1. Recognise Your Capital
The firm is the only glue that holds an expanding, separated family together without an organised, autonomous way of managing family capital. Setting up a family office can help with this problem, but it comes at a high cost. As a general guideline, a company should have enough cash to cover the costs of creating a family office and managing its ongoing expenses.
#2. Delegate Responsibilities
Decisions about your family office's setup must be made with the help of leading global experts, so you can reap the benefits of a fully equipped and trained and competent office without the cost and risk of' reinventing the wheel.'
Similarly, setting up a family office in Singapore may help you do more than assess your financial assets; it can also assist you in taking a global view of your best practices, facilitating independent family interaction, and improving decision-making.
#3. Take an Active Approach to Succession Planning
Family offices can serve as a go-between and a platform for dealing with changing family dynamics and intergenerational difficulties.
In family staff meetings, many people address business and economic issues, taking advantage of the chance to involve and empower younger members.
Leaders gain from having a new platform to convey their hopes for future generations, teaching principles to ensure the family's heritage is passed down through the ages.
Takeaway
It can be challenging to determine the actual performance of your assets; therefore, it's a good idea to look for existing benchmarks and family office services in Singapore to serve as a reference point.
Resource:
