FOXCloud: What’s on the Mind of FOX Members – March 2023
The following were the most talked about topics within our networks on FOXChat in March 2023:
Asset Vantage
Does anyone use Asset Vantage? If so, would you be willing to connect to share your experience with the software? We're considering a trial phase and would like to get some testimonials from actual users. (Source: FOPeer)
- FOX held a demo and Q&A with representatives from AssetVantage on May 9, 2023.
Family Member Health Insurance
I would like to learn how other family offices handle health insurance for family members/shareholders who are not W2 employees of the family office or operating company. Does your group insurance policy allow you to insure them? Do you have a separate plan for this group of individuals? Do you provide them options through the private exchange? (Source: HCAP)
- Our insurance plan allows us to add K-1 recipients to the same plan as the W-2 employees. This was a standard feature when we put our plan in place.
High-End Property Rental Pool
Does anyone know of a high-end rental pool similar to VRBO or Airbnb? We have a $12.5M Estate in Park City, Utah that we have not been using during the winter months. (Source: FOPeer)
- Inspirato has high end rentals and may only be rented by subscribed accounts.
- Have you looked into Inspirato, One Fine Stay, or LVH? https://www.architecturaldigest.com/gallery/luxury-vacation-rental-sites
- We use Cuvee for our property in Beaver Creek, CO. They offer wonderful concierge services as well. While I'm not sure if they service Park City, it is certainly worth a look.
Investment Portfolio Management
Interested in understanding the various ways other family offices manage their investment portfolios. Be it a larger institution such as GS, JPM, UBS, BofA, Fidelity, a boutique manager, an internal team, or outsourced advisors who manage the assets that are custodied with a larger institution. We are interested in shifting from using an investment bank with internal management to merely using the IB for custody and from that using external consultants to manage and advise on the portfolios. What has worked best for you? (Source:DIN)
- We manage one fully taxable portfolio that is custodied at Northern Trust. We have built out the portfolio internally but with investment consultant advice. We have deliberately chosen not to hold assets at a brokerage firm.
Partnership Accounting Solutions
We currently outsource our Partnership Accounting work and are looking to bring it in-house. I have a demo scheduled with SS&C/Advent's Geneva. If you have experience with Geneva, I would love to chat or hear your thoughts. I would also love to hear about other solutions that I am not aware of. (Source:FOPeer)
- Our office has been conducting evaluations on accounting software offerings and has been impressed with SEI Archways functionality. Independent references have also been very happy with the platform.
Primary Residence Architect
We are working with a family member to source an architect for an upcoming project. We would be interested in any guidance other offices have on sourcing an architect. This is a single-family residential home. It is a primary residence that will involve removing old additions and expanding the footprint. It involves complex roof changes and structural wall movement that require a skilled architect and their design expertise. (Source: FOPeer)
- I would recommend Searl Lamaster Howe Architects on Dearborn.
- Our family has used Eric J. Smith Architects on three different projects. Two of the three projects were renovations which required significant reimagining of the space. He is out of New York. https://www.ericjsmitharchitect.com/firm-overview
- Have worked with Booth Hansen on several projects over the years. Recommend for your house though they may be more multi-family/commercial than you want.
- Assuming this is a very high-end project, I'd highly recommend Tom Shafer (https://sckarchitecture.com/). You can find more about his work on his website.
Profits Interest
We've gotten a question from a client who going through a family office structuring project and is curious about the "industry standard" for the profits interest rate to use and whether it changes based on the different type of investment funds they are managing. They mentioned Lender, and we've reminded them that the Lender model had a unique fact pattern so it's not a one-size fits all approach. With that said, I thought I would poll the group to see what ranges you are seeing out there. (Source: ADVPeer)
- We strongly recommend a transfer pricing study for families who are implementing a profits interest structure. There are many variables that contribute to an appropriate level of profits interest including the nature of the investments, the level of activity (including due diligence) provides to the family by the family office, the level of the family office’s investment sophistication, etc.
Property Management Software
I am looking for best practices and recommended software to use when managing multiple properties, including those outside of the U.S. Any help and input are greatly appreciated! (Source:FOPeer)
- Most of the industry uses Yardi, and well not the best pricing or customer service, they are the best platform overall.
- I see that YARDI was suggested. Has anyone used that software? I'm interested in software for internal organization use -- for property management (mostly private residential properties, project management, construction management, with a deep bench of capabilities.
Additional Topics of Interest Seeking Peer Recommendations, Feedback, or Insights
(Your comments can be submitted as a reply to the message on FOXChat or emailed to networks@familyoffice.com for FOX to post and share anonymously on your behalf.
2023 Salary Increases
Looking to benchmark our salary increases for 2023. What range are most offices falling in? (Source: FOPeer)
Appraisal in Mesa, AZ
I am currently looking for an appraisal of a home in the Phoenix/Mesa, AZ area, ideally as soon as possible. Any recommendations for firms in this area? (Source: ADVPeer)
Colorado Tax Preparer
We are looking for a new tax preparer in the state of Colorado. Does anyone have any recommendations? (Source: FOPeer)
Employee Fertility and IVF Benefits
Does anyone offer stipends or coverage for fertility and IVF? If so, can you please share your policies? (Source: FOPeer)
Family Household Assistant
We are assisting one of our client families in identifying, interviewing and hiring a Family Household Assistant position in the Raleigh, NC market. We welcome any recommendations to identify the best candidates for the position. (Source: ADVPeer)
Fiduciary Accounting
Just wondering what software our peers are using for general Trust Administration, and Fiduciary accounting. We do all of the trust administration (except investments) in-house, and are currently doing most of the accounting, though we have outsourced some of the accounting. For perspective, we are a boutique Family Office. I would love to hear from the general community on tracking, best practices and what has worked for your families. (Source: ADVPeer)
Ireland Golden Visa
We have a client who is looking to pursue an Ireland Golden Visa. Does anyone have any attorney recommendations that could assist with this process? (Source: ADVPeer)
Nonprofit Advisor
We're looking for an advisor or consultant to engage with us on transitioning what once was a for-profit company to a formal nonprofit with a family foundation underwriting the new transition. I am familiar with Arabella Advisors out of Chicago, but wondering if others can be recommended. Open to a smaller office or boutique firm. (source: FOPeer)
Portfolio Management Education
What recommendations do people have for good continuing education programs on portfolio management & asset class due diligence? (Source:FOPeer)
Trust Accounting Software
We are a family-owned trust company offering trust administrative services and trust management services to our family members. We are currently using a Sunguard product that has been available for trust accounting for several decades. It works fine with our general processes but It has limitations when we have some of our account investments managed by outside money managers that use different custody houses. We are trying to understand the trust accounting software market to see if there are better solutions. One that can provide an auto feed into our trust accounting software without manual daily adjustments. We would like to know what other trust companies use, especially trust companies that only provide administrative trustee services. The last time we reviewed the trust accounting software space was 12 years ago. Appreciate any comments and recommendations. (Source:FOPeer)
Trustee Search
Have any mid-size or large family offices gone through a search for an independent trustee or board member? If so, would you be willing to share a sample prospectus/job description and/or a compensation range or method? We are beginning the process of setting succession plans for board members. Interested in learning what others have done/are doing. (Source:FOPeer)
Member Referrals Requested
This section includes service providers that members have recommended and/or are looking to hear about other members’ experiences.
- Architect: Booth Hansen; SCK Architecture; Eric J. Smith Architects (Source: FOPeer)
- Banking Provider in TX-Mexico: Bank of America; Northern Trust (Source: ADVPeer)
- Boutique Event Planner in Austin: TX: Pearl Events (Source: FOPeer) Destination Wedding Planner: La Boehme Events (Source: FOPeer)
- Estate for Rental Pool: Cuvee; Inspirato; LVH; One Fine Stay (Source: FOPeer)
- Exquisite Home Search: Atlantic Properties of the Lowcountry; Century 21 Korea (Brian Kim); Single Iron Management (Source: ADVPeer)
- Household Staffing Service: Household Staffing; Starkey International (Source: FOPeer)
- Lending Against Private Company Shares: Bank of America Private Bank (Source: ADVPeer)
- MFO: Bank of America Private Bank; Pathstone (Source: ADVPeer)
- Personal Assistant: House Manager (Palm Beach, FL)/Lorraine Lee Estate Staffing (Source: FOPeer)
- Personal Insurance: Gallagher (Dan Costigan) (Source: FOPeer)
- Profit Sharing Bonus Planning Structure: Central Trust Company (Source: ADVPeer)
- Tax Controversy Expert: Baker Botts (John Porter); KPMG; Carlos Schmidt (Source: FOPeer)
- Trustee Fees: Bryn Mawr Trust Company (Source: FOPeer)
Key to Network Acronyms
- ADVPeer: Advisor Peer Community
- FOPeer: Family Office Peer Community
- DIN: Direct Investing Network
- FLN: Family Learning Network
- HCAP: Human Capital Network
- LCN: Legal Counsel Network
- PTC: Private Trust Company Network
- RGN: Rising Gen Network
- TODS: Technology Operations & Data Security Network