by Cynthia Harrington One of most challenging aspects of family office work is the transition of the advisory relationship from the first to the second and third generations within a client family. Some financial advisors are solving the problem by encouraging families to formalize governance structures.
Advisors with Frye-Louis Capital Management Inc., in Chicago, do just that. Most of the 30 clients at the multi-family office have formed executive committees. These committees include the first-generation family members, and two members of the second generation. The second-generation members usually are chosen for a particular expertise, as well as their sound business judgment. Assistant vice president Jason G. Raymond, CPA, JD, said that the structure pays dividends for the second generation: “Governance issues are really relevant in dealing with multiple generations in wealthy families.”
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access