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As the family grows, both in number and wealth, it is critical to address the management of the family’s personal financial future with the same diligence that goes into managing the future of the business. So when should you separate and move your financial affairs away from the family business? In our research of business-owning families, we’v...

Sometimes the greatest challenge for a family is to agree on how they will measure the “success” of the enterprise in each generation. The metrics of success should be tied to the current goals and priorities of the family, since they must be viewed in tandem. We can’t expect strong family leaders to emerge without investing financially in their dev...

The private family trust company (PFTC) has become a popular and useful vehicle to provide trust administration to ultra high net worth families. There are many issues to consider when deciding whether to create a PFTC. These include:JurisdictionMany states have enacted laws specifically designed to apply to private trust companies. The...

The Private Wealth Management Survey is conducted annually by FOX and The University of Chicago Booth School of Business and samples alumni of Chicago Booth’s Private Wealth Management course, a four-day program offered in downtown Chicago for high net worth individuals and families. This year’s study included a look at the staff wealthy families r...

What is a Private Family Trust Company?A private family trust company (PFTC) is a state-chartered entity designed to provide fiduciary services to members of a family. PFTC is distinct from a “family office” in that it can serve as a fiduciary under state law. Private family trust companies can take on many responsibilities commonly perf...

On May 8, 2014 the Treasury department released final regulations providing guidance regarding what deductions are subject to the trust and estate 2% floor on itemized deductions, including requiring the unbundling of trustee fees for tax years beginning on or after May 9, 2014. These regulations follow the U.S. Supreme Court’s decision in Kn...

A notable trend in recent years has been the increasing popularity of private family trust companies (PFTCs). This growth is rooted in multiple factors, but here are four of the biggest.IRS Notice 2008-63, a preliminary release outlining a structure to avoid adverse estate tax consequencesIn Notice 2008-63, the IRS provided two private family ...

In a very encouraging development, the SEC has indicated that they intend to grant exemptions from the strict definition of “family” in the Family Office Rule to allow family offices to serve relatives of spouses who are related through the marriage and not lineal descendents of the family’s founder. The Family Office Rule came out of the Dodd-Fran...

Couples entering into matrimony often have to make difficult decisions associated with emotionally-charged issues such as a prenuptial (or “prenup”) agreement. If one is going to be implemented, knowing when and how to communicate the request to sign a prenup aids in its effectiveness. Approach the topic from the perspective of asset manageme...

It takes effort for a young adult leaving the family nest to become independent and self-reliant. However, the reward is the knowledge that you are self-sufficient, responsible, mature and self-aware. Here are some pointers to help you along your journey.1. Pursue Your DreamsYou’ll feel pressure from others to live your life a certain wa...

As a proud Millennial, there are clear trends I’m seeing amongst my peers and the emerging generation of young people rising behind us. The most obvious of which, is that we all want to work on something we’re passionate about. We seek purpose. We crave a work environment appeals to our mission-driven sensibilities. Most of all, we require a “why” ...

From Kickstarter campaigns to Ice Bucket Challenges for charity, when it comes to raising funds in today’s hyper-digital world, online crowdfunding is generating attention from artists, media, non-profits and entrepreneurs alike. There’s no doubt it has proven successful for a variety of opportunities, but is it relevant to serious investors?Online...

With toy catalogues in the mailbox and Thanksgiving right around the corner, I’ve been finding myself thinking a lot lately about the gifts we give to our children and which ones they end up being truly thankful for when they are older. I recently had the opportunity to hear a lot about this topic in discussions I had with real-life grou...

Our Family Office Exchange Senior Management Council met recently to discuss ways to engage the rising generation in the family office. The family foundation is an excellent vehicle for introducing the rising generation to family values, mission, philanthropy and investments. Ideally, the concept of philanthropy would be introduced...

A frustration we often hear from families is that wealth management firms all sound the same. No firm can be all things to all families. The sooner in the process firms and families realize this, the better off everyone will be. For families seeking a wealth advisor, the question isn’t who is the "best" firm, but rather who is the right firm. A non...