Joseph Milano, CLU, CHFC, CLTC, is a Managing Partner at New South Wealth Management, a high level position that indicates his expertise in managing the finances of ultrawealthy individuals. The term “centimillionaire” is used to describe those with $100 million or more in investable assets, which is the new benchmark for identifying the ultrawealthy. This group of people, estimated to number over 28,000 worldwide, require complex financial management and rely on family offices to ensure their assets are protected and managed effectively.
The wealth of centimillionaires typically comes from one of four sources: inheritance, the sale of midsized enterprises, trading and investing in stock markets, or leading multinational tech companies. Regardless of how their wealth was acquired, sudden changes in financial status can happen “gradually, and then suddenly,” causing a need for strategic management to preserve and enhance a family’s fortune. Setting up a family office with defined goals is crucial for the ultrarich to ensure their legacy is protected and to manage the complexities of their assets.
Family offices can be structured in different ways, either as single-family offices (SFOs) or multifamily offices (MFOs), depending on the needs and goals of the family. Issues to consider when setting up a family office include wills and estate planning, asset control, tax planning, succession, investment strategies, philanthropy, and legal compliance. Key factors for family offices to review include establishing the legal entity, compliance with tax laws, and ensuring adherence to regulatory requirements to avoid potential legal issues.
With wealth comes responsibility, and a family office allows centimillionaires to structure the succession of their assets, establish a culture around their wealth, and serve their communities. Financial professionals can assist in establishing or overhauling family offices to ensure that the financial legacy of ultrawealthy individuals is maintained and protected. It is important to consult with licensed professionals for advice concerning specific financial situations to ensure that assets are managed effectively and responsibly.
The Forbes Finance Council is an invitation-only organization for executives in accounting, financial planning, and wealth management firms, indicating a high level of expertise and experience in the field. Centimillionaires can benefit from the guidance and expertise of financial professionals to ensure that their assets are effectively managed and protected for future generations. Consulting with licensed professionals and establishing a family office can help ultrawealthy individuals navigate the complexities of managing their financial status and legacy.
