Centrolaw

Every single family office is different in size, structure, functions, and wealth under control. Regarding the question, if you are ready for a family office, expert opinions start with a minimum liquid asset value of USD 30 million, move to USD 100 million, and finally end at USD 500 million to create a single-family office. However, in our view, there is no ideal world-specific point or stage of wealth where a single family office should be created. It’s all based on individual needs to define the required family office service offering. A lean structure to start will also be reflected in the running costs, and you can add further services later. Blog original source: https://www.centrolaw.ch/en/insights/detail/the-costs-of-a-single-family-office

If you don't get estate planning right, the outcome can become devastating. Swiss inheritance law follows the principles of universal succession and acquisition by operation of law. This blog tells more about legal succession, compulsory portions, ways to avoid conflicts, and how the legal framework will look in 2023. The revision focuses on increasing the testator's freedom of disposal by reducing the compulsory portions. Parents will no longer have a compulsory portion, although they remain entitled to their statutory share. Testators can dispose of at least 1/2 of their estate even if they are married and have children. Read blog: https://www.centrolaw.ch/en/insights/detail/succession-law-in-switzerland

  Whether you already have a single-family office or plan for one, complexity will be its companion. Although they should be designed and managed like a business, single-family offices face many challenges. Outstanding results are not guaranteed but require specific efforts by each family member. The family office's vision and mission, value proposition, and underlying values are critical for its success. Like a business, a family office set-up requires constant reviews and adjustments. Still, with the focus on solid fundamentals from the outset, it is well-positioned for flexible adaptation to change. Blog original source: https://www.centrolaw.ch/en/insights/detail/how-to-elevate-your-single-family-office-to-excellence

Valerie Remoquillo-Jenni, an independent family governance advisor based in Zurich, shares her insights on building family governance on individual needs and family wellbeing. Family governance is a family-driven process to create formal and informal mechanisms that articulate and act upon shared goals. Wellbeing can be on the agenda of various family forums, such as at a family council meeting or an annual retreat. Once priorities are set, the family can commit resources to specific wellbeing measures. Translating findings on family wellbeing into governance actions can take different forms. Wealth can mean different things to each family member, who may derive various benefits but also responsibilities or burdens. Reaching a consensus on the purpose of wealth will enable cohesive and sustainable wealth planning. Blog original source: https://www.centrolaw.ch/en/insights/detail/centro-law-guest-series-thrive-a-wellbeing-framework-for-family-governance

Giuseppe Violetta, a Milano-based wealth and succession planning consultant, shares his insights regarding succession planning in Italy. Family businesses are the backbone of the Italian economy, and there is a broad offering of financial instruments and tools for wealth planning, including local trusts. Italian business families are historically primarily invested in their family business. Nowadays, companies and trusts are no longer seen as asset hiding vehicles. Combining trusts, corporations and fiduciary mandates gives entrepreneurs a wide range of options to manage both companies' transition and private wealth to the next generation. Some family offices did not migrate together with their controlling families to Italy. Giuseppe advises taking the utmost care of your family's purpose and values. They will determine the family business's destiny in the long run. Attending dedicated courses on family business management could be an initial step before discussing strategi

  Investments are at the core of single-family offices' success. Some families still rely on standard wealth managers' services and model portfolios. However, a bespoke approach in line with the family office strategy delivers more. The entire process should clarify your investment strategy's goals, objectives, and vision. The family office's role in data processing is crucial for the success of an in-house investment committee. It plays an essential role in considering all relevant factors such as returns and benchmarks, asset allocation adherence, cost and risk limits, and other information required to monitor the strategy execution. Depending on the individual circumstances, its functions can be outsourced entirely. Blog original source: https://www.centrolaw.ch/en/insights/detail/the-single-family-offices-investment-strategy-and-committee

The chance of increasing gift and inheritance taxes is obvious. This is the moment to assess your estate's inheritance tax exposure and implement a tax planning strategy. We want to stress that this is not a field for testing new inheritance tax planning approaches - you should rely only on proven and legitimate strategies that your tax environment allows. Focus on legitimate inheritance tax planning techniques - each situation is unique. Estate planning should not be driven by mere tax considerations to reduce inheritance taxes. Diversifying and looking at the big picture is key to estate and inheritance planning success. Tax laws may change over time, so consider planning for an uncertain future. Blog original source:  https://www.centrolaw.ch/en/insights/detail/inheritance-taxes-the-toolbox-for-effective-planning

  Stephanie Gnissios, a climate risk advisor to financial markets, shares her insights on climate as an emerging financial risk category. She highlights why wealth owners and asset managers should incorporate climate into governance, strategy, and decision-making. Starting with understanding which climate risk channels could be material to your investments. Don't strive for the correct answer or expect to solve all challenge in the near term. Instead, focus on building a framework to assess and manage the most material risk channels. First, look to understand how climate risks are material, then concentrate on meaningful analysis. This post explores how climate risk can affect investment performance and investment strategies. Blog original source: https://www.centrolaw.ch/en/insights/detail/centro-law-guest-series-climate-risk-an-emerging-financial-risk-category