Family offices are investment structures that assume every day to day management and administrative activities of an ultra-rich family’s wealth which can vary in billions of dollars. The main purpose is to preserve the wealth of the family and transferring to the next level of generations. Family offices are relatively new in Asia and Australia. However, there are a number of benefits of choosing since it is an attractive destination for various activities. The benefits include;
Family offices can obtain exemption from paying tax on designated investments like immovable property. These incentives promote financial standing to the regions of the wealthy families
Excellent dispute resolution systems
The confidence of well of Asian families that govern structures and proper succession of family businesses will be strongly enforced in GEW family offices. This helps in avoiding succession wrangles.
It’s operate in a clear regulatory environment and under a jurisdiction that is politically stable.
Family offices enhance reduction of the amount of taxes payable thus uplifting the activities recognised to the public media and promote people’s welfare.
A Family office can ensures that there is a better alignment of interests between financial advisors and the family. Such interests are doubtable in a non-family office structure.
Consolidation of risk
It allows the functioning of accumulation of risk result management and delivery of information. This assists the management to make wise decisions to meet the goals.
It allows professionalization of assets activities which are very likely to bring more returns at a very lower risk from decisions made from investments.
In conclusion, the amalgamation of fiscal benefits, tax incentives, decentralization and centralization of risk makes Singapore very suitable for the appropriation of family offices. It ensures that its importance is not disturbed and continues to function to its best level.