Integrated family offices services

Solutions

Our integrated Family Office services

Tailored to your needs

Properly structuring and staffing a family office requires an analysis of tax and governance considerations, as well as a deep understanding of the family’s short and long-term business and professional goals and objectives.

Effective family wealth management integrates individual, personal and family goals and encompasses a range of services required. To account for the complexity and idiosyncratic nature of family offices, Deloitte offers customised solutions in the areas of Financial Strategy & Compliance, Family & Corporate Governance, Operations & Systems as well as Tax & Wealth Structuring.

Effective family wealth management integrates individual, personal and family goals and encompasses a range of services required. With regard to the complexity and individuality of the family business, Deloitte offers customised solutions including family office design and set-up, income tax and wealth (transfer) planning, family education and communication.

Ultimately, the goal for many ultra-high net worth families is to strengthen and sustain the family legacy for future generations. We understand the process of family governance and have the knowledge and experience to set up and help family offices.

Client needs and key characteristics of a Family Office

The needs of Family Offices are as varied as the origin of their clients. The majority of Family Office topics include financial aspects concerning the family’s assets and trans-generational issues but also personal issues related to aging. Coaching, philanthropic planning, mediation between family members and governance are just a few areas that are central to professional Family Office wealth management. Furthermore, a professional setup of wealth management, structuring and consolidation services as well as well-defined, efficient and discrete operating models are all key criteria Family Offices must deliver to attract the attention of HNWIs.

Key Criteria for Families when considering Family Office solutions:

  • Maintain and enhance family’s wealth
  • Independent advice on complex asset solutions
  • Demand for integrated approach and solutions
  • Trusted relationship / high confidentiality and exclusivity
  • Coordination of diverse family interests and needs (school, relocation, etc.)
  • Financial and succession planning

Deloitte tailored services for your business

As a leading global provider of audit, tax and consulting services backed by a worldwide network, Deloitte Luxembourg has extensive resources and expertise at hand, enabling us to provide tailor-made solutions for family offices and wealthy families.

Deloitte provides a dedicated central point of contact for family office related services. We offer a full range of services coordinated by one team, for a seamless approach that best suits your family’s needs. Our people are familiar with their clients’ business sector and the key issues they face; they are experts in the technical aspects of their professions. This means they can and will deliver a premium quality service. Our mission is to help our clients and our people excel.

For this reason, Deloitte Luxembourg offers a cluster of expert services for family offices. Our clients include individuals, foundations, banks, asset management companies and corporations. We also have relationships with leading financial institutions. Our aim is to be at the crossroads of a multiplicity of clients and of a wide range of expert services.

 

Financial Strategy & Compliance

Family Office topics are directly linked to strategic considerations about investment underlying, style, mix and regulatory constraints. To keep up with changes and various industry trends, our professionals are committed to creating opportunities that help you become better connected within Family Office networks and understand the ever-changing regulatory requirements. Supported by an international network of specialists, Deloitte can provide an extended framework of services to meet the objectives of single Family Offices and Multi-Family Offices.

 

Family & Corporate Governance

Families often require and promote responsible and ethical behaviour that is elementary for maintaining a trusting and altruistic future for a family’s heritage and wealth. Therefore, understanding and managing a family business and its various activities builds on an increasingly in-depth financial awareness. Deloitte has expertise in the use of a variety of educational resources and project management tools that will allow a Family Office to handle and solve governance related issues appropriately.

 

Operations & Systems

Present-day Family Offices are complex service providers that use a variety of systems to document all activities potentially connected to family wealth, from holdings in group companies to charity support projects. To ensure an efficient and secure management of family wealth, the consolidation of all diverse systems and assets to provide a comprehensive overview is becoming increasingly important.

 

Tax / Wealth Structuring

The location of a Family Office should provide various vehicles to optimise its structural design based on specified business and non-business related objectives. It is in the (U)HNWI’s/family’s interest to use these structures to allow for a maximum level of wealth preservation via beneficial tax structures with a high level of business flexibility. Appropriate structuring requires an analysis of tax and governance considerations, as well as an in-depth understanding of the family’s short and long term business and professional goals and objectives.

Luxembourg as a prime location for Family Offices

Luxembourg is currently one of the safest and most stable financial centres in the world. Legal certainty, tax benefits, the presence of a variety of financial institutions and a mature private banking industry are the main criteria for wealthy clients when deciding where to place their investments. In the case of Luxembourg, these criteria have long helped to attract foreign investment and will have an even more significant influence in the future.

In Luxembourg, Family Offices offer a variety of services ranging from non-financial services including data management, accounting, banking and finance, to more personal services including coaching, philanthropy and mediation. In this area, the industry relies on a well-established network of experienced service providers.

 

The Family Office Act

The Family Office Act regulating family office activities in Luxembourg came into effect on 21 December 2012. This made Luxembourg one of the first countries in the world to have a specific regulatory framework tailored to the activities of Family Offices. While the law does not provide a clear definition of the Family Office itself, it does provide an explicit description of the activities that a Family office can and cannot perform.

The most important innovation of this act is the creation of a new Professional of the Financial Sector (PSF) – Family Office status. This dedicated PSF status requires professionals to register with the CSSF if they are not already automatically authorised as regulated professionals in view of their services. It also requires them to henceforth be supervised by the regulatory authority and to comply with a number of professional obligations (such as AML, professional secrecy, etc.).

By adhering to these requirements for Family Offices, substantial value added can be created for Family Office clients by offering them professional and trustworthy services.