Family Offices and Family Trust Companies

Family offices provide a centralized structure for managing the complex financial, legal and personal affairs of high-net-worth families.

These entities can handle everything from investment management and tax planning to estate administration, philanthropy and even day-to-day financial operations. Setting up a family office involves careful planning, robust legal structuring and a deep understanding of each family’s unique goals and dynamics. At Schneider Bell, our seasoned attorneys bring over a century of estate planning experience and insight to guide families in establishing and operating family offices and private family trust companies. We’re dedicated to creating customized, sophisticated solutions that ensure your family’s wealth and legacy are protected for generations to come.

Focus Areas:

Counseling Fiduciaries and Beneficiaries

Family Offices and Family Trust Companies

Irrevocable Trust Modifications

Private Foundations

Tax Return Preparation

What Is a Family Office?

A family office is a private entity created to manage the wealth, financial affairs and personal needs of a single family or, in some cases, multiple families. Beyond investment management, family offices can provide a broad range of services, including tax planning, estate planning, philanthropy coordination, risk management and succession planning. Family offices often take on additional roles as well, such as assisting with family governance, managing properties and handling day-to-day financial needs. The objective is to create a centralized, tailored approach to managing family wealth and responsibilities, fostering cohesion and efficiency in decision-making.

What’s the Difference Between a Family Office and a Family Trust?

While both family offices and family trusts are used to manage and protect family wealth, they serve different purposes and operate differently. A family trust is governed by a legal instrument that directs the trustee to hold assets on behalf of family members, allowing for controlled distribution, asset protection and tax efficiencies. A family office, however, is a more comprehensive structure that enables oversight of a wide range of financial and personal services, including the management of family trusts. In essence, a family trust is one of many components within a family office’s larger framework, and a family office may provide services to assist trustees to administer multiple trusts or other entities to support the family’s diverse needs.

Private Family Trust Companies

We provide trusted advice to family office clients and their private family trust companies. We can serve as general counsel to the family office or to the private family trust company, to provide guidance on day-to-day administrative issues, as well as more major decisions.

Some families may be interested in forming their own private family trust company, to install a permanent entity, controlled by the family, as the trustee of their family’s trusts. A private family trust company can be a free-standing entity, or it can exist to supplement and enhance the services provided to the family through the family office. 

Ohio has allowed formation of private family trust companies since 2016, but our Trusts and Estates attorneys have decades of experience before then working with private family trust companies established in other jurisdictions. We work with private family trust companies to help them establish best practices for operations and governance and implement a consistent set of practical protocols to ensure proper administration of the trust company and the trusts. We also are available to share the depth and breadth of our overall experience with the complex issues in administration and tax matters inherent in carrying out the terms of trusts.

Advantages of a Family Office

Establishing a family office offers numerous benefits for families including:

  • Centralized Management: By consolidating financial and administrative functions, a family office creates a streamlined and efficient structure that aligns with the family’s objectives.
  • Privacy and Control: Family offices provide families with complete control over their affairs, allowing for high levels of confidentiality in all financial, tax, and legal matters.
  • Customized Wealth Management: Family offices design or oversee investment strategies, philanthropic efforts, and succession plans to align with each family’s unique values and goals.
  • Enhanced Governance: By managing family dynamics and establishing clear governance practices, family offices can support intergenerational harmony and continuity.
  • Tax and Estate Planning: Family offices enable cohesive tax planning and estate and gift planning strategies that minimize liabilities and ensure the long-term preservation of wealth.
  • Legacy and Philanthropy: A family office can help families define and execute their philanthropic goals, creating a lasting legacy that reflects their values

Why Our Experience Matters

Setting up and managing a family office requires a combination of legal knowledge, financial acumen and a deep understanding of family dynamics. At Schneider Bell, we bring a wealth of experience in trust and estate law, tax planning and fiduciary matters to guide our clients through every phase of family office and family trust company development and administration.

Our team works collaboratively to design structures that are legally sound, tax-efficient and reflective of your family’s goals. We help families create governance structures, develop investment and philanthropic strategies, and ensure regulatory compliance. Most importantly, we understand the personal side of family offices and are committed to providing guidance that respects and strengthens family bonds.

With Schneider Bell, you gain a trusted advisor who is dedicated to helping your family achieve its financial, personal and legacy goals.

 Contact us today and let us help you build a family office or family trust company that supports your values, preserves your wealth and fosters your legacy for generations to come.

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