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Heritage Structuring

We support you in setting up your asset management structure ('Family Office'), tailored to your situation, from the moment the idea germinates in your mind, until the moment your asset structure is fully operational and in line with your needs.

Wealth Management

Wealth lies far more in the lasting use one makes of something than in its fleeting possession.

Aristotle

Typical structuring of an asset portfolio worth around €10 million

The establishment of a heritage structure (called " family office(in English-speaking countries) is relevant for those:

  • who have sufficient assets (such that the profits generated are not absorbed by training and management costs),
  • have worked and/or continue to work to grow and/or preserve it,
  • want to take advantage of it when the time comes, before or during their retirement (even if they envision an 'active' and, no doubt, also 'eclectic' retirement).
  • wish to ensure an effective (meaning 'not fiscally confiscated') transfer to their descendants. 

Objectives generally pursued

  1. Having a legal vehicle in which assets can grow with reduced taxation.
  2. Enjoy retirement to the fullest without excessive mental burden.
  3. Optimizing the management, taxation and transfer of assets.
  4. Preserve family harmony (avoid conflicts over inheritance).
  5. Ensuring the intergenerational sustainability of heritage.

Relevance of family office

Criteria Relevance Comment
Heritage Structuring Very relevant Allows for the centralization of real estate assets, financial assets, works of art, etc.
Tax optimization Crucial Estate planning, dismemberment of ownership, donations, life insurance, Dutreil agreement, etc.
Organized transmission Very relevant Formation of holding companies, family foundations, family agreements.
Professional Management Adapted A family office can delegate to competent managers with personalized reporting.
Confidentiality / Governance Favorable Creation of discreet structures with formalized family governance.
Operating costs To be evaluated The annual cost (several tens of thousands of euros for a family office 'light') is only justified from 3-30M€ of movable assets.

Typical profile for high relevance

  • Assets > €5-10M (financial assets, real estate, investments).
  • Several heirs or beneficiaries need to be taken into account.
  • Willingness to delegate or organize management in a professional manner.
  • International context (multiple residences, expatriate children, etc.).

Suitable alternatives if the assets are <€3M

Option Description
Multi-family office (MFO) Shared access to services family office at a lower cost.
Independent wealth management advisor Notary + tax lawyer + wealth management advisor (CGP).
Civil heritage company (SCP/SARL) To structure family real estate or movable assets.
Family holding A tool for consolidating, transferring and managing entrepreneurial or financial assets.
Multi-support life insurance A flexible tool for management, taxation and transfer, with tailor-made beneficiary clauses.

Establishing an effective asset management structure

The approach usually followed typically covers the following aspects:

Asset audit
  • Statement of assets, liabilities, income, and anticipated needs.
  • Inheritance and tax analysis.
Defining the objectives
  • Donation during his lifetime
  • Succession planning
  • Right of use / usufruct
  • Establishment of a foundation
Choice of legal structure
  • Family holding company
  • Civil society,
  • Dutreil Pact (French tax scheme which allows a 75% exemption from transfer taxes on the transfer of a business or company shares, subject to specific conditions of retention and commitment of function),
  • Trust (an arrangement by which a person entrusts the administration of their assets to an intermediary for their own benefit or for that of a third party)
  • Private Foundation

not forgetting the crucial choice of the geographical location of this legal structure.

Governance
  • Distribution rules
  • Family Committee
  • Family Charter
Monitoring and management
  • adjustments to fiscal volatility,
  • adaptations to family structure (births, divorces, deaths...),
  • geographical organization,
  • Financial reporting and monitoring.

Useful references

  • French Association of Family Office (AFFO)
  • Book: The Guide to Family Office – Eyrolles Publishing
  • Notary file: Inheritance and inheritance: strategies for retirees – 'La Lettre des Notaires de France' magazine

In conclusion

The creation of a family office or a related asset structure is relevant for an active person or retiree with significant assets who wishes to both enjoy a peaceful retirement and intelligently plan the transfer of their wealth to their heirs. The choice between a single family office, a multi-family office or hybrid solutions will depend primarily on:

  • of the level of wealth,
  • of the range of investments under consideration,
  • the complexity of the family situation,
  • the need for delegation or autonomy.

It's important to adjust your expectations when managing a portfolio worth around €10 million. To give you a better idea, here are the differences to expect between managing a portfolio of €10 million and one worth around €200 million.

Learn more