How is an SFO (Single Family Office) set-up in Singapore?
An SFO is set up to the needs of a single family. An often-integral function of the family office is to manage the assets of the family in order to fund the needs of the family.
Considerations when setting up a Family Office
Depending on the amount of assets of the family and the needs of the family, the set-up of every family office is usually different.
Some considerations when considering whether and what to include in a single-family office set-up include (non-exhaustive):
- Types of assets – whether they are listed or private companies, or whether the assets need maintenance
- Tax needs and planning of the assets and family members/beneficiaries
- Immigration needs of family members
- Needs of the family, e.g whether they need medical support services
- Overall investment strategy
- What expertise is needed and whether the professionals need to be in-house
- Oversight of the running of the family office
- Whether generational transfer considerations are needed
- Whether a governance charter is needed
*Running a family office typically costs 1% to 2% of a family's total active assets (e.g. investment portfolios and trust assets), or more.