Building an enduring legacy through a family office

Singapore is becoming a favourable hub for ultra-wealthy local and international families looking to set up family offices. Discover how a family office can help you build a lasting legacy.

Family offices may not be a new concept, but since the pandemic – and the uncertainty that followed in the recent years, such as soaring inflation rates, international conflict and oil and gas shortages – they have grown in popularity in Singapore.

In fact, the estimated number of family offices here almost doubled to 700 in 2021 from 400 a year earlier. As a leading financial hub, Singapore has a well-developed infrastructure with political and economic stability. Add to this competitive tax regimes and investments in developing a talented workforce, it’s easy to see why it’s an attractive option.

Family offices are defined as single or multi-family offices. A single family office would support just one individual and their family, while a multi-family office can serve more than one family. Within single family offices, there are small, medium and large single family offices. In Singapore, single family offices are required to allocate S$10 million of assets in local investments.

In terms of financial assets, studies have shown that Asian single family offices outperformed their European and the Middle Eastern counterparts from January to July 2022.

Let’s take a closer look at the family office and what it entails.

What is a family office?

A family office is an investment vehicle that supports the day-to-day administration and management of a family’s financial and non-financial affairs. From providing advice on charitable giving to private schooling arrangements; wealth transfer planning to concierge services, no one family office is the same. They differ according to each family’s unique needs. In simple terms, a family office is designed to protect and grow a family’s wealth while ensuring smooth succession in the future.

What can a family office do for you?

There are a number of benefits to having a family office:

• Consolidate your wealth in one place, even if your business(es) span multiple countries.
• Tap into the expertise of specialists to develop a wealth management strategy for the future, one that has purpose and meets the needs of your family.
• Saves you time and minimises the complexity of financial management, ensuring a robust plan is in place for your goals.
• Your personal information is held securely and only accessible to a limited number of people.

However, family offices are not without their challenges, such as an increased compliance burden, competing priorities or cyber security risks, to name a few.

Why you may need a family office?

• You have a complex financial situation with a number of private and personal investments.
• You need help tracking your professional and personal affairs, such as ensuring bills are paid when you’re travelling.
• Your children need support in managing the family fortune.

Time to follow the trend?

If the above scenarios apply, then a family office could be for you. Look at the assets you want to include, the services you need and how much you are willing to spend on set-up.

Every family is different, so what’s right for one might not be right for another. For example, some may only require a single family office, while a multi-family office would be more suitable for others. One family might be looking to understand the investments they can make to address their specific business challenges and goals, while another is after tax compliance support. Understanding you and your family’s needs early on is key in your wealth management journey.

Get in touch with your Financial Consultant to find out more about family offices and how Opus’ panel of Value Added Service partners can advise you. Start putting the foundations in place to build a lasting legacy for generations to come.