FOXCloud: What’s on the Minds of FOX Members – September 2024
The following were the most talked about topics within the networks on FOXChat in September 2024:
Employee Severance Packages
Does anyone have information pertaining to severance packages when restructuring takes place in a family office? Do you base the package on years of service? Any information would be greatly appreciated. (Source: FOPeer/HCAP)
- Our last two retirees (20 years + tenures) received a severance package equal to their last year salary. We do not have a set policy; the family determines what they would like to do.
- I am serving in an interim role here at FOX monitoring the HC channel. I was formerly the Chief Talent and Learning Officer at a large MFO. Typically, the senior level advisors and executives had a 6-month base salary severance agreement in their contracts. Mid-to-low-level employees got anywhere from 30-90 days depending on their years of service.
Retiree
For the first time, we have an employee retiring from our family office after 19 years of service. I'm interested in learning what other offices typically offer retirees beyond a farewell party. Do you provide personal gifts, experience gifts, or a final bonus? Additionally, do you extend any benefits or support beyond retirement? Your insights would be greatly appreciated. (Source: FOPeer)
- I would be interested in hearing the response to this question as well.
- Our office worked with the retiree's clients to host a retirement party. All employees and their spouse/partner, clients, and the retiree and family were invited. We talked with the employee's spouse for a gift idea, and several clients purchased a boat for the retiree. It was a gift, paid directly by the clients, and not taxable to the employee.
Member Referrals Requested:
This section includes service providers that members have recommended and/or are looking to hear about other members’ experiences.
Chicago-Area Employment Lawyer/Consultant
We are a Chicago-area, single-family office looking for an employment lawyer or consultant to advise on updating our employee handbook. Any recommendations would be much appreciated! (Source: FOPeer/HCAP)
- Libby is absolutely amazing. Always very responsive even for our most minor issues. She is our best external attorney in any category hands down. I'm happy to make an introduction.
- Elizabeth N. Hall
Shareholder and Chair, Labor and Employment Practice Area
Vedder Price
Chicago, IL
Website: www.vedderprice.com
- Elizabeth N. Hall
- I suggest Stacey Smiricky at Faegre Drinker. Stacey has done great work for us in the employment space. Feel free to use my name when you contact her.
- We second the recommendation for Stacey Smiricky. She’s been fantastic for our small family Office and always makes herself available. We did our own employee handbook, but she checked it to make sure we were compliant.
- You may want to try Cara Ottenweller at Vedder Price. She is great to work with.
- Website: www.vedderprice.com
Insurance Broker
We are a single-family office located in the Northeast with homes in New York City, Hamptons, Bahamas, and Montana. We are exploring a change in our insurance program. Does anyone have a broker they strongly recommend? (Source: FOPeer)
- We have used Risk Strategies for many years and our experience has been very positive. Jeff Kaplan is the lead person on our account.
- Our office is in the process of switching over to Risk Strategies. They have a lot of experience with HNW families and family offices so it seems like they will be a good fit to insure all of our office's personal residences along with the businesses and investment properties. Additionally, they seem to be creative and attentive to our specific needs. Our main point of contact is Sandy Leon.
- I worked with a Marsh Private Client group based in NYC for many years before changing office and moving to California where I am working with a different Marsh group. My main contact in NYC is Sarah Aguirre. You are welcome to use my name if you contact her.
Non-U.S. Citizen Tax Obligations
I am looking for recommendations for tax consultants who have experience navigating tax obligations for non-US citizens who spend a lot of time in the U.S. We have a client with Japanese and Indian family members, and it has been difficult getting clear information on whether or not they have to file anything. We'd especially like to connect with someone who understands any exemptions these family members could qualify for. (Source: ADVPeer)
- We can help here at Armanino (Chris Mays).
- David Doctor at my firm specializes in this area and can assist.
- Inna Merzheritsky is our firm's international tax leader, specializing in both international and domestic tax planning, compliance, and controversy work. She serves a diverse client base, ranging from global companies with international operations and multinational families and family offices.
Inna's has expertise in residency planning as well as cross-border transactions, choice of entity planning, executive compensation, and employee relocation. She frequently advises families, their trusts and charitable foundations on domestic and international tax planning. She also advises on complex tax structures involving domestic and foreign companies.
Private Operating Foundation Consultant
Has anyone worked with a consultant to help start a private operating foundation? I'm looking for a recommendation for someone who can offer comprehensive support throughout the setup process, including organization design, technology solutions, accounting, marketing, and more. (Source: FOPeer)
- Boldly Go Philanthropy is the best at this. I interviewed over a dozen firms and selected BG. Shout with any questions.
- It's not really a service advertised on their website, but we used Amy Phipps at Lee+ Associates in San Antonio to help on the front end of setting up several different private family foundations.
Relocation Consultant
Does anyone have a referral to a consultant who can advise on non-tax aspects of relocating from California to another state? Interested in the consultant being able to provide insight into lifestyle factors one may consider such as: availability of high-end properties, access to international airports/Hangar Space for personal aircraft, suitability to maintaining a car collection, weather, access to nature, and so on.(Source: ADVPeer)
- Thank you for reaching out. BPM is a multi-family office advisory firm that offers comprehensive solutions tailored to the unique needs of both California and non-California family offices. Our services go beyond traditional financial and tax planning, covering a broad range of lifestyle operations such as real estate, private aviation, concierge services, impact on human capital and governance, and more.
Regarding your inquiry about the non-tax aspects of relocating from California to another state, we often assist clients in evaluating lifestyle factors. We'd be happy to connect for an introductory meeting to learn more about your specific needs and how we can support or make additional introductions.
- We have been very impressed with Heidi at Bond and Des Voeux—they specialize in every aspect of relocation, from strategic considerations/selection through planning and implementation of the move. Hope this is helpful and I'm also happy to discuss.
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.)
Bundling of Insurance Policies
Has anyone bundled their property and casualty insurance policies with a single carrier? Did you receive a discount when bundling the policies? (Source: FOPeer)
Evaluation of Foreign Tax Residency Options
If you have researched potentially surrendering U.S. tax residency and to then elect or qualify for tax residency in a foreign country, what resources did you use to determine which foreign country was the best solution? (Source: FOPeer/LC)
Flexjets
We are going to lease a fractional interest with Flexjets. The plane will be used for both personal and business use. We are trying to determine whether to have the Family Office C-Corp lease the plane and get reimbursed for personal use or have the family member lease the plane and get reimbursed for business use. Are there any issues to watch for in either scenario? I also have questions about how to account for family members riding on the plane when the partner is flying for business purposes. I appreciate any input from others with experience in the mixed-use of private planes. (Source: FOPeer)
Personal Security Operation in California
We have a security team of between 20 and 25 people divided between people who provide personal/close contact security and camera/command post security. Our team does not carry weapons at the owners' request. The family has contracted with third party security providers for this staff for many years, though the highest-level supervisors are employees of the family office.
The family pays a high amount of fees for this support, but we have been mostly dissatisfied with the contractor firms we work with. It has been difficult to provide supervision to this staff, and conflicts among the contractors and direct employees are the source of continuing stress. The family would like to consider hiring security directly so that we can better supervise and direct the staff and inculcate them into the culture of the family and of the office.
I would like to know if anyone else has done this in California, e.g., going through the process of becoming a Private Patrol Operator, adding the extra insurance, etc. (Source: FOPeer)
Private Foundation Training
Do you have any recommendations on firms that provide training to executive directors (and staff to some degree) regarding private foundations? Topics could include allowable transactions, testing for private operating foundations, filling requirements, etc. (Source: FOPeer)
Travel Insurance
Does anyone have recommendations for a U.S. citizen living and working in the UK (United Kingdom) who needs U.S. health coverage for U.S. visits. This individual has health care coverage in the UK (through employer) and has a travel policy (through employer) which responds to health needs on work travel. However, this individual does not have coverage for personal travel which would take place in the U.S.
The travel would be short term in nature, less than one week at a time, but could occur several times throughout the year. Looking to see if anyone has any recommendations regarding travel insurance or preferred carriers. (Source: FOPeer)
Software Reviews/Experiences
This section contains software platforms that members have recommended and/or are looking to hear about other members’ experiences.
Addepar – Summitas Fee
Has anyone set up a feed from Addepar to Summitas so that the Addepar data appears on your dashboard? We would be interested to hear anyone's experience. (Source: TODS)
Advent to Black Diamond Migration
Is there anyone who has switched portfolio management systems from Advent AXYS/ACD to Black Diamond? How was the transition? (Source: FOPeer/TODS)
Art/Collectibles Inventory Tracking Software
Does anyone use a system for fine art tracking/inventory that they would recommend?
We currently use Collector System and are mostly satisfied with it, but we are hoping there is something a little more dynamic – such as tracking by QR code – that would be recommended. (Source: FOPeer)
- There are many platforms, tools, and apps in the art collection world. Some are more oriented to dealers or museums, but certainly have collector capabilities. Here are two platforms that I am aware of.
- ArtCloud
- Primer
Financial Planning Software
We are in the early stages of identifying financial planning software options that will help our family office in discussions with family members as to where they are allocating funds (foundations, homes, college tuition, etc.) as we work to ensure they have enough available funds for their other lifestyle needs (retirement, healthcare, etc.). On our staff we have some experience with eMoney and Money Guide Pro but are looking for one or two other suggestions, so we have a reasonable sample of software providers. (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