By Brian E. Ravencraft, CPA, CGMA is a Principal with Holbrook & Manter, CPAs
A family office isn’t what you might think it is. It is not the office you use at home to take care of family matters. It isn’t the office the you use to run your family business. A family office is essentially a private team of professionals dedicated to managing the finances of a wealthier family and high net-worth individuals. These wealth management entities help steer a family’s investments in the right direction and, in the United States, they are rapidly growing in popularity.
Family offices are typically classified into three different classes depending on which services they offer:
- Class A: Comprehensive financial oversight, estate management and objective fiscal consulting for a flat monthly fee.
- Class B: Investment advice and consulting for an as-needed fee, but does not directly manage illiquid assets.
- Class C: Basic estate and administrative (bookkeeping, mail sorting, etc.)