Imagine your great-grandfather started a corner store over 100 years ago. Over the years and generations, the business has grown and changed a lot. Now, the family owns two corner stores and there are ten family members that all share ownership of the business.
This is where things start to get complicated and fights often begin. However, it doesn’t have to be this way. With a family office, you can avoid the #1 reason families argue: poor communication and a lack of organization.
In particular, virtual family offices are a great fit for many different kinds of families. They are becoming more and more popular as technology has made it easier to bring services together virtually. Now, let’s learn a little bit more about what virtual family offices are, who they’re good for, and their benefits.
A virtual family office is essentially a single-family office that organizes and coordinates various professionals to meet your needs. A family office can deal with a whole range of financial concerns such as paying bills and staff, managing wealth, investing, and more.
However, instead of all working for you in one specific office, they may work remotely and also attend to other clients. In addition, you may have a coordinator who helps organize all of the different professionals who are working with you.
A virtual family office offers a simple solution for families to organize all family affairs, specifically the family’s finances.
A virtual family office can work for any family that decides to use one. However, the family office is particularly well-suited for families whose members aren’t all located in the same place. For example, imagine you have family members on different continents! How could you make it feel like everyone is equally involved in the family’s affairs? With a virtual office, everyone can feel like they have the chance to be involved and connected.
Virtual family offices are also perfect for any family who wants to achieve a legacy. With a virtual family office, the family can easily make a legacy plan and ensure that future generations continue to benefit from the family’s wealth. In addition, specific plans can be made regarding the transfer of wealth. For example, imagine that education is very important to your family. Wouldn’t it be wonderful to create college education funds for the youngest generation? Or, what if charitable giving to certain causes is a high priority? You can also outline and execute these aspects of your family’s legacy through your virtual family office.
Virtual family offices offer certain advantages over traditional family offices. In particular, there are three main benefits:
Many families opt for a virtual family office for these reasons.
Typically, setting up a VFO takes a few planning stages to set goals and functions, and then identify and hire your team. Finally, it’s time for execution when the family office springs into action for the first time. Many families decide to use the help of an experienced professional to guide them through the process of creating a virtual family office. That way, they can guarantee a successful outcome and a smooth process.
A virtual family office can be a wonderful way to manage your family’s finances and reach financial goals, all while bringing the family closer together. Are you ready to set up your virtual family office?
Elaine has experience creating and supporting VFOs. Contact her today to set up a meeting!