1. Family Office Tax and Legal Structures
David Kilshaw EY
24 May 2016

2. Some opening comments
Family Office Tax and Legal Structures

3. There are estimated to be between 3,000 and 15,000 SFOs
Half of them set up in the last 15 years
Family Office Tax and Legal Structures

4. BUT
“If you have seen one family office, you have seen one family office” - Dr Kirby Rouploch
Family Office Tax and Legal Structures

5. AND “Like snowflakes, no two family offices are alike”
Family Office Tax and Legal Structures

6. SO……
To talk about tax and legal structures in 10 minutes is quite a challenge!
Family Office Tax and Legal Structures

7. The Solution
A good guide
Family Office Tax and Legal Structures

8. Qualities of a guide Purpose How? Where? Relationship Vision
Family Office Tax and Legal Structures

9. Purpose I
Investment
Family Office Tax and Legal Structures

10. Purpose 2: The Family Glue
Family Governance/Constitution
Succession and Security
Privacy
Education
Philanthropy
Family Office Tax and Legal Structures

11. How?
HOW!!
Family Office Tax and Legal Structures

12. Seven steps towards a SFO
Step One
Assess current wealth and family situation
Step Seven
Monitoring and controlling
Step Two
Define goals
Step Six
Implementation
Step Three
Define function and scope of services
Step Five
Organise the family office
Step Four
Define legal and governance setup
Family Office Tax and Legal Structures

13. Sample family legal structures
Founder’s office
Multigenerational family office
Founder
Accountant
Personal Assistant
External Advisors
Lawyer Auditor Insurance Investments
Family Office CEO or President
Chief Operating Officer
Chief Financial Officer
Family Governing Board
Business Board of Directors
Chief Investment Officer
Chief Philanthropic Officer
Tax
Accounting
Bill Pay
Partnership A/c
Reporting
Fiduciary Services
TeClient Service
Concierge Services
Insurance
Personal Security
Communication
Financial Planning
Technology
Real Estate
Private Equity
Marketable holdings
Manager oversight
Family Foundations
Venture Philanthropy
Impact Investing
Investment Committee
Foundation Board
External Advisors
Lawyer Auditor Consultant Insurance Security Investments Governance other …
Closely Held Businesses
Medium-sized family office
Family Office CEO/President
Family Council
Business Board of Directors
Foundations
Tax, Accounting
Bill Pay
Partnership A/c
Reporting
Technology
Fiduciary Services
Financial Planning
Real Estate
Private Equity
Marketable holdings
Manager oversight
Family Foundation
Closely Held Businesses
External Advisors
Lawyer Auditor Consultant Insurance Investments Other
Chief Financial Officer
Chief Investment Officer
Family Office Tax and Legal Structures

14. Where
Family Office Tax and Legal Structures

15. Seven considerations when deciding where to set up the FO
Homebase of (international) family members and patron
NextGen more mobile
Global tax compliance
Cloud/new IT solutions enable international setup
New locations such as Dubai, Qatar or Singapore
Established locations revisited such as Liechtenstein, Luxemburg or Switzerland
Where is the geographical center of the family?
Safe environment (geopolitical risks)
Legal stability
Tax regime
Discretion
Availability of professionals for FO
Presence of banks, advisors and lawyers
Geographical connectivity 1 7 6 5 4 3 2
Family Office Tax and Legal Structures

16. Family offices and the fiscal authorities
Family Office Tax and Legal Structures

17. Vision
Family Office Tax and Legal Structures

18. Key visions Plan early Consult and lobby Review and double review
Family Office Tax and Legal Structures

19. Conclusion Complex Costly Critical A good guide KISS
Family Office Tax and Legal Structures

20. Professional Experience
David Kilshaw
Partner Private Client Services – London
Direct Tel:
Mobile:
Address:
Ernst & Young LLP, 1 More London Place, London SE1 2AF
Background
David is a partner in EY’s private client team in London, where he heads their Family Office practice.
Prior to joining EY in 2014, David was the head of another top four private client practice.
David is also a qualified solicitor and was previously a partner in a leading City Law firm.
David is listed in Spears Top Ten Private Client Accountants.
In 2014 and 2015 Citi Wealth listed David as one of their “top 20 men in Private Wealth Management”.
Professional Experience
David has extensive experience of working with international clients on their tax affairs and the creation and management of their Family Offices. He acts for a number for major families who are based in London and elsewhere. David acts for several of the UK’s largest landed estates. He also advises banks and other wealth managers on the tax treatment of their products for non-doms.
David advises on the UK tax aspects of property ownership structures and works with real estate colleagues to ensure they are relevant and commercially effective from the private client perspective.
Skills
David has over 30 years of experience of working with private clients, their investments and related structures. He works closely with colleagues in corporate finance, real estate and private equity.
In 2012 he was named by Spears as one of their top 5 advisers in the UK and previous peer recognition includes Citiwealth’s accountant of the year in He won the Spear’s inaugural award for accountant of the year in In 2014 eprivateclient listed David as one of their top 50 private client advisers.
In 2016 David was Who’s Who legal’s “Private Client Trust and Advisory Professional of the year”.
Family Office Tax and Legal Structures