Who Needs a Family Office?

More and more successful Canadians are selling their businesses or cashing in on their company stock plans. This is often the first occasion these individuals have had to actually think about how much they own and what they need to do to protect their financial security. It is critical to first meet with a qualified tax advisor who can help minimize the income tax on sale. While there are many ways to reduce these taxes, the ideal approach is to meet with a multi-disciplinary professional group who will take the time to get to know all aspects of the individual's personal and family financial situation before providing strategic tax planning in advance of the liquidity event. Such planning can set up structures to reduce income taxes that will arise for years to come from the investment of these funds as well as protect you against unforeseen risks.

Once the work of converting non-liquid assets to investment capital is completed, comprehensive financial planning is needed to consider broadly what the family will do with their newfound wealth. Depending on the family’s objectives, the planning structure and strategies for the family’s wealth must anticipate a wide variety of possibilities ranging from buying new homes, moving outside of Canada, giving to family members or worthy causes, or starting new business ventures.

As well there are the nuts and bolts issues of accounting for all assets, selecting and managing investment managers, minimizing taxes on ongoing investments, and meeting all filing deadlines, year after year. The accompanying chart shows the many tax and financial activities that need to be handled, and how the Kerr Family Office concept can get them all done for you.

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