FAQ
We’ve compiled a list of common questions and concerns that our clients and visitors often have about our family office services. Whether you’re new to the world of family offices or you’re a seasoned investor, we hope that you’ll find the information you need here.
If you have a question that is not answered on this page, please don’t hesitate to contact us directly. Our team is always happy to provide personalized guidance and support to help you make informed decisions.
What is a Family Office?
A family office is dedicated to the management of the assets of one or more wealthy families. Although family offices render a wide variety of services, the main responsibilities of these institutions comprise the administration, organization and preservation and/or increase of the family’s wealth.
However, at the P&P Family Office we believe that wealth management should be organized comprehensively, taking tax, asset and risk management into account, and therefore assist our clients in the coordination of such three pillars by onboarding best-in-class service providers.
What is the difference between a single-family office and a multi-family office?
However, multi-family offices can split the costs between all families, resulting in lower costs for each family. The P&P Family Office is a multi-family office.
What is the difference between a family office and an asset management company?
The family office – unlike an external asset management company – serves as a single point of contact between the client and their selected service providers (e.g. banks), has no conflict of interest and can provide the client with a consolidated view over all of the client’s assets. Additionally, external asset managers do not provide a holistic approach comprising all tax, risk and asset management and cannot guarantee the client institutional rates since asset managers tend not to consider private clients as institutional investors.
Why establish or use the services of a multi-family office?
The benefits of engaging a multi-family office such as the P&P Family Office are manifold. Today’s world is becoming increasingly complex, with enhanced information requirements, constant legal and regulatory updates, new risks associated to the digitalization the economy and more. Multi-family offices like the P&P Family Office can help its clients navigate today’s challenges in a comprehensive manner, covering three main pillars: tax, asset and risk management. Through the orchestration of services rendered by third parties, the P&P Family Office allows its clients to improve all performance-related aspects – including investment returns, taxes and fees – ultimately increasing its client’s overall after-tax returns.
Who are the clients of P&P Family Office?
Entrepreneurs
Phillip (62) left his lifetime job to start his own business. To be able to fully focus on the setting up and development of his new company, he needs a long-term and personal solution that ensures that the portfolio he has built in the past 20 years and that he plans to leave to his children is professionally managed.
Trustees
Adrian (45) is considered by his clients as a very reliable and trustworthy professional. With the aim of protecting the Trusts under his responsibility from any legal or tax risks, he turns to the P&P Family Office for assistance with tax management and legal compliance matters. Adrian knows his clients want to guarantee long-term financial stability and therefore appreciate working with best-in-class service providers who can ensure no conflicts of interest will arise.
Members of Foundation’s councils
Lisa (49) has recently been appointed as a member of the council of a family foundation. Upon her designation, she realized bank fees paid are rather high, in comparison to the returns obtained by the foundation in recent years which are low. Lisa turns to the P&P Family Office to assist her with the correct fulfilling of all her responsibilities as a member of the foundation’s council and to optimize the foundation’s performance after fees and taxes.
Individuals with no investment experience who receive significant donations or inheritances
Pascal (32) inherited CHF 7’000’000 from his grandfather 6 months ago. He delegated the management of the inheritance to various asset managers, but now he realizes this set up is complex from a tracking and oversight of the assets’ perspective. Pascal decides to reach out to the P&P Family Office so that it acts as a single point of contact and helps him to have a clear and unified overview of his entire wealth.
Individuals that wish to relocate to Switzerland
Mr. and Mrs. Kaufmann (70 & 72) wish to relocate to Switzerland to enjoy their well-earned retirement at lake Lucerne. They are looking for a professional solution that helps them both legally with the paperwork and filings related to the relocation and with the restructuring of their wealth in a tax efficient manner. They turn to the P&P Family Office who can advise on the tax and legal requirements applicable to individuals who wish to move to Switzerland. Additionally the P&P Family Office organizes a “beauty contest“ to help the Kaufmann‘s decide which best-in-class service providers they want to work with for their asset management.
Does the P&P Family Office also have an internal Asset Manager?
At the P&P Family Office, we do not render any asset management ourselves, we coordinate and monitor best-in-class third party providers, such as banks or asset management companies, who render these services. This allows us to always act in your best interest, without any conflict of interest.
What is the minimum investment amount?
At the P&P Family Office we coordinate services for high-net worth individuals, families, companies, foundations and trusts with a minimum wealth of five million Swiss Francs in bankable assets, in addition to their non-bankable assets.
In which jurisdictions is the P&P Family Office located?
The P&P Family Office is based in Switzerland with offices in the Cantons of Lucerne and Schwyz. However, the P&P Family Office coordinates services for Swiss and Liechtenstein tax resident clients and other clients from selected jurisdictions with bankable and non-bankable assets located in different jurisdictions.
Does the P&P Family Office charge any fees?
Yes. The fees charged by the P&P Family Office are based on the bankable assets (without non-bankable assets and cash accounts) of the client taking into consideration the complexity of the wealth.
Do I need to leave my current financial service providers to work with the P&P Family Office?
No. Since at the P&P Family Office we do not render asset management services ourselves but rather coordinate the services provided by best-in-class third parties; you can continue to work with your current financial service providers as desired. Although the P&P Family Office may assist its clients in the selection process of service providers (i.e. meetings, benchmarking, etc.), the final decision of which service provider to work with lies exclusively with the client.