Professional services for Family Offices

Last Thursday four leading private client professionals joined with me to record Client Stories with their Family Office clients. This will be played at our next ‘Members’ Meeting on 23rd February at 11.00 when our Members can then also share their client stories with our other attendees.

First up was Nic Arnold, Tax Director in PwC’s Private Office. She also leads the firm’s Luxury Asset Advisory practice. I have known for many years that PwC has a luxury asset advisory practice since my former tax partner at Simmons & Simmons was the global head of the direct taxation group at PwC. It was therefore a great pleasure to hear what Nic is up to and her role in her luxury asset practice with our Members.

For many wealthy families the purchase and management of their luxury assets; yachts, planes and art are their most expensive single asset (outside their business). Nic’s expertise is making sure they do not spend any more on buying and managing their luxury assets than they need to.

Unnecessarily, wasting money was also the theme of Charlotte Thorne’s Client Story.

Charlotte is a Founding Partner of Capital Generation Partners which invests primarily for clients with Family Office sized net wealth. Charlotte’s story was about a client who went to their preferred bank to buy a put option on the S&P 500. Unbeknown to her client a fee was buried in the small print of 10% of the purchase price; $57,800.

Charlotte had placed the same trade on behalf of a discretionary client through another bank and had been charged only $208. This wide discrepancy of fees is not unusual, but it takes an expert like Charlotte to know what to expect in terms of fees and what is excessive.

Charlotte managed to work with the client to claw much of these fees back. You can find her Charlotte’s Client story uploaded onto her profile on Caroline’s Club

We were also delighted to be joined by Sylvia Andreotti who was able to step in, at short notice, on behalf of Rebecca Bettany who was called up to take the Covid-19 vaccine and did not wish to lose her slot.

Sylvia is based in Monaco where she joined JTC in 2020 as an Associate Director having previously been responsible for the management of a Multi Family Office. Sylvia’s specialist subject is international corporate law, implementing cross-border instruments for multinational companies and UHNW families across multiple jurisdictions.

Her Client Story was about a family who moved from Ukraine to Switzerland together with their luxury assets.

Jonathan Gain founder and Chief Executive of Asset Management firm Stellar was also on the panel to share his three-minute Family Office Client Story. In setting up Stellar Jonathan recognized the opportunity of what he calls and inheritance economy – the transfer of £5.5 trillion of wealth to the next generation over the next thirty years.

Last but not least was my Client Story about a Client for whom we put in place an asset protection structure, good governance and smooth succession, but sadly he had struggled to implement it fully, with the result that on his death the business was split up between his eldest child and his young wife.

After we had recorded our three-minute stories, the recording machine was switched off and I asked our little group for feedback.  Two things, in  particular, struck me was that everyone found the exercise, not only enjoyable but also educational.

Nic Arnold said ‘Jonathan I have always known about the inheritance benefits of Business Property Relief, but not known where to go on behalf of my client to build a portfolio around assets which qualify’

Charlotte Thorne was also interested in what Stellar was doing ‘We are both advising clients on what to invest, but from very different and complementary perspectives’

I particularly liked, as did our other panellists the idea of choosing your own bit of forest into which to invest which can be visited as well be excluded in the estate on death which means a saving of 40% tax.

I am delighted to say that we will be hearing more of what Jonathan and Stellar do for their clients as they are sponsors for our March, April and May Members’ meetings of Caroline’s Club.

If you would like to hear the recording of our panellist client stories and attend our next meeting on the 23rd February where you will have the opportunity to share your Client Story with our Members, simply register and upgrade your account to become a member, or you can listen to our panel’s recording on YouTube or on Caroline’s Club soon after 23rd February.

If you would like to promote your services and skills to our network of private client professionals and join our Culture of Care click here to find out more and if you would like to join Caroline’s Club simply register here