Protecting family wealth and ethics so they will help succeeding generations is the goal of a family office. The Unger Company works with family offices to provide wealth transfer strategies that preserve family wealth for heirs.
Extremely wealthy people can be very different from regular people in ways that are important to understand. The use of a structure called a family office is one example of how things can be very different for HNW and UHNW families.
The Unger Company works with family offices representing our clients, so we thought it would be a good idea to clarify the “family office” so other people could better understand this unique structure.
The family office is often defined as a private wealth adviser for an ultra-high net worth family, but to us that definition comes up a bit short because the family office can do a lot more than just advise on financial or investment matters.
It is very true that financial management is the primary component of the functions fulfilled by a family office. We should be a little more specific: These are single-family offices, serving only one family. Some very recognizable names that have such offices include the families behind such iconic businesses as Walmart (the Walton family), Microsoft (both the Bill Gates family and the Steve Ballmer family), Amazon (the Jeff Bezos family) and Dell Computers (the Michael Dell family). The cumulative wealth in just these few offices amounts to billions and billions of dollars. Impressive, huh?
With that large of an asset base, you can understand why these are often viewed as private wealth management or advisement – that’s a big part of what family offices do. Keeping the enormous wealth safe for one generation after another is a big undertaking, and effectively producing income and minimizing risk is a big aspect of that responsibility. Beyond wealth planning and management, single-family offices will take on income tax planning, trust and estate planning, and family governance. Another part of family governance is the perpetuation of the founder’s ideas and ideals.
The intersection of these areas is right where The Unger Company’s perspective can be invaluable. The Unger Company works with a family office in a highly specialized way as an estate tax strategist that is beyond the core competency of other professionals working in closely related fields.
The fact is that, as specialists in estate tax planning, The Unger Company understands the ins and outs of working within the tax code to maximize the protection of family wealth as it transfers between generations. In fact, in this industry, generations are often numbered, which helps to distinguish which Mr. Smith (or Mr. Gates or Mr. Walton) we are referring to. Therefore, grandma and grandpa, the patriarch and matriarch of a family office, would be referred to as Generation 1; their children would be G2; the grandchildren G3, and so on. The estate tax strategy needed for smooth wealth transfer between generations is the heart of what the The Unger Company does.
We assist the family office’s attorneys, accountants, and financial managers in designing insurance-based solutions to offset or minimize estate taxes. This complex work is something that requires tremendous fluency with the tools needed to mitigate painful estate taxes. When we say that Uncle Sam won’t send a thank you note for taxes paid, that even includes such prominent families as these. And you can also rest assured no government agency will assist in perpetuating the ethics and directives of the founder of the family office.
Running a family office is a complicated and expensive undertaking. Creating a great wealth transfer plan that includes a fortress of protection is something that every family office should have in its long-term plan. This is exactly where The Unger Company can help you.
Specializing in high-net-worth and ultra-high-net-worth clients, The Unger Company, Ltd. has been serving clients in these wealth classes since 1969. Our founder Harold Unger is a leading expert in creating solutions and strategies for the estate tax problems faced by very wealthy individuals and families. We work closely with the legal, financial, and accounting team of our clients to provide maximum protection for an estate, enabling succeeding generations to continue to enjoy the privileges of wealth. Contact us through our website or call us at 212-755-4777 to learn what we can do for you.
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Harold Unger LinkedIn: https://www.linkedin.com/in/harold-m-unger-9453aa73/
The Unger Company Ltd. LinkedIn: https://www.linkedin.com/company/93617123/
The Unger Company, Ltd. does not seek to practice law for clients and these published items are intended only to be informational in nature.
