Family Office Wealth Management Services

Services

Overview

Family Offices are set up with the primary objective of “Creating Values”, “Earning sustainable Wealth”, “Preserving Assets for the transition to next-generation”. Family Offices are personal wealth management firms of the High Net-worth /ultra-rich class.

Family Office (FO) offers a multitude of activities including Investment Planning, Portfolio Management, Estate Planning & Administration, Philanthropic Planning, Income Tax Planning, etc.

The services are based on a broad range of assessments like:

Family tree – list of members and their brief profile, business/profession.
Family net worth (consolidated) with individual/entity-wise break-up.
Nature of business operations and the ownership matrix in which they operate – the status of IT and GST compliance.
The future vision of key promoters of the family group and their challenges.
Future requirements of the family promoter to be addressed.

The services are based on a broad range of assessments like:

Family tree – list of members and their brief profile, business/profession

Family net worth (consolidated) with individual/entity-wise break-up

Nature of business operations and the ownership– the status of IT and GST compliance

The future vision of key promoters and their challenges

Future requirements of the family promoter

Services which we offer under family office management:

Succession Planning–

Advisory Services related to will drafting, gift deeds, and assistance in registration.
Advisory Services related to formation and Registration of Family Trust having family values and objectives at the core in a tax-efficient manner including Valuation of personal assets for assistance to the settlor for the basis of distribution at defined period.
Documentation support and Registration formalities.
Will execution, probate execution/ facilitation.
Compliance services – Filing of necessary returns, representation Services under various tax laws.
In case of death- Registration and compliance on behalf of Legal Representatives/Executors including filing assessments, returns, etc.
Guidance on documentation to executors for wealth distribution in line with probate.
Assistance in settlement of insurance claims, third-party recovery, etc.

Family Business Restructuring Services –

Strategies in a tax-efficient manner (M&A, BTA, etc.) – Structuring, Valuation, Tax planning vis a vis Wealth creation, Execution, Legal drafting, and representation.
Tax opinions on complex business and investment transactions.
Transaction Advisory Services – Strategy, Formation, Registration, and Compliance support.
FEMA, Company Act, or other regulatory compliance along with representation.
Vetting of legal documents.

Family Business Management Services –

High-value business services in global investments and operations.
Providing specialized business-critical, financial and administrative services that assist operations in different geographic locations where Incorp has a presence directly or through trusted partners across the globe.
Single point of contact to coordinate the day-to-day management of outsourced operations such as CFO services, financial planning, and fund syndication through Debt /Equity, account writing, HR payroll management, Tax compliance, and Advisory retainers, etc.
Time to time consultancy on taxation, finance, and other commercial verticals.

Family settlement activities – Assistance in legal documentation, Tax Advisory, and compliance.

Services to HNI / Ultra HNI Families –

➔ Wealth Management Services-

Board member representations for HNI/ Ultra HNI family management and assistance in the investment decision-making strategies.
Management of Lifestyle assets.
Personal finance and wealth management advisory on asset creation and security tailored to your specific needs.
Assistance in Cross border Investments – RBI, FEMA compliance, Advisory on International Tax implications, documentation, and execution support.
Investment compliance services.
Accounting and documentation support for timely compliance.
Risk management services for reduction/rationalization of personal liability ensuring advantages of favorable legislative regimes.
Coordination with Tax auditors as well as banks without creating a conflict of interest in corporate governance or local regulatory restrictions.
Tax compliance under Direct Tax, Indirect Tax.
Formation of Family Investment holding entity like LLP, One Person Company or Private limited in line with strategic wealth creation goals and long term preservation.
Registration and Regulatory (including Corporate Secretarial) compliance with the periodic tracker.
Operational Support including maintenance of books, acquiring registrations, and timely intimation.
Outsourced Accounting and Financial planning.
Tax planning and advisory.
Advisory services (In Selection of Various Products to choose from which not only gives best returns but is also Tax Efficient).
Co-Ordination with Fund Managers and associates for Regularly Monitoring the Investment.
Studying the Impact of Introduction of Various Laws which are being Introduced and how the same would affect our Investments.
Studying the Impact of Amendments introduced in Income Tax Laws by way of Budget, Ordinance, etc.

➔ Back Office Support Services –

Executing accounting and tax responsibilities, including reporting.
Coordination, organization, and hosting of the board and other meetings.
Preparation of board packs, minutes, and other reports.
Review of financial accounts and transactions.
Maintenance of records.

NRI Services –

➔ Investment Advisory for Inbound Investments keeping in mind regulatory and tax provisions.
➔ Immovable property management services –
- Payment of property taxes.
- Payment of monthly maintenance.
- Collection of rent (if tenanted property).
- Arranging for realtor services when needed.
- Tenancy documentation – drafting and registration of rental contracts, etc.
- Assistance for sale of the property and repatriation of funds.
➔ Investment Accounting and relevant documentation support.
➔ Regulatory compliance and reporting.
➔ Tax Advisory Compliance and reporting.

Philanthropy –

Formation of Charitable Trust, Section 8 Companies for purpose of charitable activities.
Registration under Trust Act as well as Income Tax Act for tax exemptions.
Regulatory compliance on a periodic basis.
Assistance in certification and reporting.
IT / GST return filing and assessment.

Frequently Asked Questions

What are family office management services?

Family office management is full-service private wealth preservation and compliance services that serve Ultra-high-net-worth (HNI/UHNI) families and Non-Resident Indians (NRIs) including Indian Citizens settled abroad. Against a backdrop of challenging legal and regulatory requirements and the need for transparent financial compliance, family offices are under increased pressure at the operational as well as management level. Family offices are increasingly operating on a global scale, whilst often having only one local presence. Individuals serviced by these offices are more demanding and expecting family offices to focus on their core. (sentence does not sound accurate) Family offices generally provide accounting, Corporate secretarial, tax advisory as well as compliance, Succession planning, Philanthropy advice, Wealth management services, custodian activities, and other comprehensive services.

Why do you need a family office?

With a family office, the family is able to directly oversee decisions about its financial matters. The family office management Services serves as a partner in the work of preserving the family's assets along with channelising them for smooth transition to its next generation in a transparent manner. Further, many HNI/UHNI families rely on their family office to foster a sense of community and family unity over time with outsourced professionals.

What makes a good Family office manager?

To get your money's worth, your family office manager should have a team of experienced and capable advisors well-versed in financial planning and tax planning within regulatory corners, which starts from managing existing wealth to planning future estate and retirement goals.

Are ‘Family Offices management’ same as Portfolio Management Services (PMS)?

Portfolio Management Services (PMS) is a kind of wealth management service. Like mutual funds, they are managed by professionals known as portfolio managers. These experts offer a wide range of curated investment strategies to benefit from the available opportunities in the market. However, over the years, it is noticed that the professionals handling PMS are mainly associated with various securities and investment products available in Capital markets, but many times the regulatory or tax aspects are given the least of priorities. Therefore, Family office management plays a vital role in easing financial, regulatory as well as tax planning including compliances for avoidance of high tax cost/ litigation.

Are family office management expenses deductible?

Depends on case to case.

» Expenses on Family office management activities supporting family business succession and administration can be claimed as Business expenses from a trade or business.
» Expenses on family office management activities preserving wealth and its management can be claimed as expenses against return on Family investments. Investment expenses usually represent a large proportion of family office management costs, and their deductibility generally mitigate the net costs of running such an office.

Services