Family Office & Private Wealth

Family offices require a comprehensive suite of legal services including wealth structuring through trusts and corporate entities, succession planning frameworks, investment vehicle establishment and governance, asset protection strategies, philanthropic structures such as Private Ancillary Funds, family governance documentation including constitutions and protocols, cross-border tax planning, and ongoing compliance management. Effective family office legal support integrates these elements into a cohesive strategy aligned with family values and long-term objectives.

Intergenerational wealth transfer typically involves a combination of testamentary trusts (established through wills to provide tax-effective distributions to beneficiaries), inter vivos trusts (lifetime transfers with asset protection benefits), family trust restructures to optimise control and succession, superannuation death benefit planning, and business succession arrangements. The optimal structure balances tax efficiency, asset protection, family governance considerations, and flexibility for changing circumstances across generations.

A family constitution is a governance document that establishes principles, policies, and procedures for managing family wealth across generations. It typically covers family values and vision, decision-making protocols, membership criteria for family councils or boards, conflict resolution mechanisms, employment policies for family members, distribution principles, and succession frameworks. While not legally binding, a well-drafted constitution provides clarity and reduces disputes, making it particularly valuable for families with complex wealth structures or multiple branches.

Asset protection for family wealth involves establishing appropriate structures before claims arise, including discretionary trusts with independent trustees, corporate holding structures, proper separation of business and personal assets, adequate insurance coverage, and strategic use of superannuation. Key principles include ensuring genuine control separation, maintaining proper documentation and governance, avoiding fraudulent conveyance concerns, and regular structure reviews. Asset protection must be implemented proactively. Restructuring after a claim arises is often ineffective and may be challenged.

Family offices commonly utilise unit trusts for pooled investments with clear proportional ownership, discretionary trusts for flexible distributions and asset protection, private companies for active business investments, self-managed superannuation funds for tax-advantaged retirement savings, and limited partnerships for specific ventures. Offshore structures may be appropriate for international diversification, though Australian tax residency rules require careful navigation. The optimal structure depends on investment type, family member involvement, tax considerations, and exit planning requirements.