Banks are essential to protect our wealth as well as valuable belongings. Most likely, everyone has a bank account somewhere where we’ve kept the money, bonds, and maybe precious items like jewelry. The vaults and lockers in banks are used to safeguard our wealth. They also serve as a security cover for our lives. We have access to them whenever we require cash to purchase everything.
In the same way, wealthy families hold their wealth, but on a larger scale. Families gain wealth through generations. They have to transfer the wealth to their children and there need to be strategies to be in place. The vault and locker rules are not applicable in this case. Families need to set up trusts to ensure that funds are transferred to the beneficiary on the specified date. They hire a UAE family asset investment company.
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Additionally, there is the responsibility of protecting real estate and properties from any potential creditors and also managing inheritances. Families need to pay taxes, get insurance, and take care of issues related to guardianship.
Each of these financial issues requires that a family receive the assistance of an office manager. In the past, this idea has been employed by wealthy traders from both the United States and Europe. In recent years it has become an instrument of wealth management for families with a high net worth.
Family offices (FOs) could contain two or three employees to manage the day-to-day tasks. Family offices (FOs) on the contrary, will be staffed with between 10 and 20 professionals who make investment management choices. Families may choose to use the services from a wealth manager or a bank .