Monday, July 2, 2012
Family Offices are offices that designed to fit the professional needs of wealthy families, and are divided into two different types of offices, Single-Family Offices (SFOs) and Multi-Family Offices (MFOs). A SFO handles the affairs of one family, while a MFO handles the affairs of multiple families. A person might want to consider hiring the services of a family office if would like to coordinate the different professionals that would most likely be working on the family's finances.
A family might want to consider only hiring an SFO if that family has more than $250 million in assets. However, if the family has between $25-250 million, then that family might want to consider using a MFO. The primary reason for this is cost. It is going to cost much more to hire a SFO, but those who can afford to solicit their services might want to consider it because SFOs can be invaluable allies. Generally, there are several advantages to hiring a family office. These types of offices can provide:
- Better, coordinated services at what could be more competitive prices
- Convenient service
- Comfortable and personal service
See Jack Waymire, Do You Need the Services of a Family Office?, Worth.com, June 27, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.