Richard C. Wilson on What a Family Office Does

Speaking at a conference in Las Vegas, Richard C. Wilson introduces a video series on creating a family office.

Richard C. Wilson introduces the purpose of a family office and explains how financial responsibilities can grow alongside wealth. He outlines different ways families can arrange support and describes how that support can help owners direct their time toward personal and financial priorities.

In this video: Richard C. Wilson (Conference speaker on creating a family office)

What they said

1. Richard on family office structures. Richard describes virtual, single-family, and multifamily offices. He says a single-family office gives a family a dedicated full-time team, while a multifamily office is a wealth management firm focused on ultra-wealthy clients.
2. Richard on avoiding costly mistakes. Richard contrasts a small filing or deal-structuring error for someone with a million dollars with a mistake costing a million dollars for someone worth $100 million. He says a family office can help avoid errors, even if it does not speed up deals or planning.
3. Richard on financial administration. Richard says tracking LLCs, equity stakes, trust documents, closings, transfers, deadlines, and government letters can become a part-time job. He also points to recurring K-1 paperwork and the administrative work that comes with employees in different states.
4. Richard on where to spend time. Richard says owners should consider where they make the most money and where their time and money have the best return. He also names time with family and personally or philanthropically rewarding work as priorities to consider.

In their words

"essentially you're trying to holistically manage everything that touches your balance sheet, everything that you do financially."

"And so you want to make less mistakes, but also be better at playing offense."

Why it matters if you are building or preserving great wealth

Richard says a family office can help owners communicate their plans, goals, and values to family members and advisers. That gives the administrative work a purpose beyond staying organized: it can help the people around the owner understand what they are working toward.