Family Office
Family Advisory
Mutual Trust helps families navigate the ever-changing landscape of intergenerational wealth. We work with ultra-wealthy and high-net-worth families at varying stages of their journeys. What is clear is that each family charts their own unique course to success and therefore must navigate their own distinct challenges along the way.
Uncovering the Purpose of Wealth
We have observed many recurring themes over the years and identified five facets that matter most to successful families of wealth. This has informed the design of a valuable family framework (The Mutual Trust Gemstone) which can apply to a family’s unique situation. We use this framework to help families uncover what matters most to them – the purpose of their wealth.
The five facets of the Mutual Trust Gemstone:
1. Financial Prosperity: Growing financial capital sustainably to provide for the needs of the current and future generations of the family.
2. Entrepreneurship: The family’s ability to use its wealth to perpetuate entrepreneurial spirit by sustaining its operating business and supporting other entrepreneurs through the provision of both capital and talent.
3. Family Unity and Harmony: Strengthening family relationships, values and trust, building communication, problem solving and the ability to undertake roles and responsibilities using each person’s strengths while valuing their differences.
4. Learning, Engagement and Fulfilment: Enabling individual family members to pursue their personal aspirations through education, the provision of opportunities and following their passions so that they can lead productive and fulfilled lives.
5. Community Impact: Giving the family’s time, treasure, talent and ties to make a positive impact on society through creating jobs, supporting philanthropic causes, serving in the community, and paying taxes.
Building a Family Strategy
Once a family has defined its Purpose of Wealth and the generations are aligned, we help them build and execute a Family Strategy that will guide them on their intergenerational wealth journey – whether they’re new to wealth or several generations deep.
Developing a Family Strategy is complicated and requires honest, open collaboration and careful guidance. The role of Mutual Trust as an objective third party is critical in supporting family members to form, express and document their goals and desires.
The output is comprehensive, resulting in the family having a bespoke plan for each of the five facets within the Mutual Trust Gemstone framework. When combined, this becomes the family’s full program of work – their Family Strategy.
In our experience, taking the time to design and prioritise each component of the plan upfront promotes long-term success.
A modern Family Office
The role of the modern Family Office is to support families in executing their Family Strategy and delivering on their Purpose of Wealth.
There are various Family Office models available to help families achieve their goals across generations. The four most common operating models used today are:
- Single Family Office – where a family establishes and operates a separate legal entity solely devoted to providing Family Office services to a single family;
- Business Family Office – where a family embeds a service within their primary business to serve family members – this could range from concierge to wealth management;
- Virtual Family Office – where a family uses external providers such as advisors from accounting firms, stockbroking firms and/or banking institutions – this can be run from a home office; and
- Multi-Family Office – similar to a Single Family Office except that it offers a broader range and scale of Family Office services to several unrelated families.
There are also hybrid options available. For example, Single Family Offices often find there is great benefit in partnering with a Multi-Family Office to guard against key person risk, support any skill gaps and provide continuity in case of a major life event.
The right model depends on the unique circumstances of each family. The model selected should be equipped to serve the family into the future and be cost effective, whilst offering the flexibility to accommodate change and address key person risk. Importantly, it needs to be able to deliver on the Family Strategy to maximise the positive impact of a family’s wealth.
We call this approach the modern Family Office. At Mutual Trust, we work with many families to help them assess which Family Office model is right for them.
“ A modern Family Office will support the family in defining, building and executing on their Family Strategy, no matter how complex their circumstances may be.”
Jeff Steiner – Partner, Head of Family Office
Empowering rising generations
Of the reasons why intergenerational wealth transfers are not successful, 85% are attributed to two key things; a lack of communication and/or a breakdown of trust (60%) and insufficient preparation of inheritors (25%). The remaining 15% is attributed to families not defining their Purpose of Wealth (12%) or poor investment advice (3%)*.
Open communication between all generations of family members builds trust and helps make family members’ aspirations clearer, resulting in better decision making. For families to flourish, focusing on communication is vitally important. It’s also critical to ensure the rising generations are equipped with the tools and experience they need to lead and manage family wealth. A considered program of learning, engagement and fulfilment strategies tailored to address individual and collective family needs sets all family members up for success and prepares inheritors to become responsible stewards of wealth.
Mutual Trust’s “Rising Gen” Program is designed to empower future family leaders with the connections, skills and knowledge required to be successful in their careers and in their family roles. Through our Rising Gen community and bespoke learning programs, we seek to spark the imagination and excitement of the next generation and provide them with practical skills to thrive and manage their resources.
*William & Preisser (2010), Preparing Heirs: Five Steps to a Successful transition of Family Wealth and Values, Robert D. Reed Publishers, San Fransisco, pp. 35–49.
“ Increasingly, we are seeing the family purpose being strengthened by collaboration and relationship-building across generations. We support this by engaging, educating and empowering younger family members so they can realise their potential and prepare for future roles in their family and society.”
Elizabeth Goldfinch – Partner, Family Office
Family governance
Just like successful multi-generational businesses which operate under a framework of guidelines and governing principles, so too do successful multi-generational families.
By proactively addressing issues and establishing a bespoke governance framework, families can build a solid foundation to promote cohesion and communication – elements which are critical to successful intergenerational wealth management.
Our Family Office specialists create a safe, open and respectful environment to help families define the principles and rules under which they wish to work, invest and make decisions. We then bring this together and document the output, creating a Family Constitution.
As the overarching framework that supports families to sustainably manage and grow their wealth across generations, the Family Constitution is invaluable. It addresses how families make decisions, manage capital, access income and transition assets, whilst also providing a reference point to help family members engage constructively with each other and manage disputes.
The Family Constitution is not a static document. It grows and evolves alongside a family, ensuring it remains relevant and effective in helping each generation navigate the complexities of intergenerational wealth.
“ Family harmony matters. You can have all the financial and entrepreneurial success in the world, however if you can’t sit around the dinner table together with your family, then what is the point? Our definition of wealth is much more than just financial.”
Brad Simmons – Partner, Head of South Australia
Membership
As an active member of Family Office Exchange we are part of an international community of Family Office Executives who come together to identify common issues that many wealthy families face. This membership enables Mutual Trust to leverage learnings and global best practices whilst contributing to the international stage, ensuring our families have access to the most advanced thinking and practices in Family Office management.
Mutual Trust is also a founding member of the Wigmore Association, an innovative group of leading and non-competing Family Offices which work together globally to help our families thrive. The association is an important resource for each member firm, providing trusted global intelligence and exclusive access to an international network.
Our Experts
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Jeff Steiner
Partner, Head of Family Office
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Rob Hemphill
Partner, Head of Development
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Maria Lui
Partner, Head of Client Experience
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Brad Simmons
Partner, Head of South Australia
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Julian Butler
Partner, Head of Western Australia
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Ralf Haase
Ralf Haase – Partner, Head of New South Wales
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Craig Retallack
Partner, Family Office
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Angela Rutherford
Partner, Family Office
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Roslyn Odgers
Partner, Family Office
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Pierston Hawkins
Partner, Family Office
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Elizabeth Goldfinch
Partner, Family Office
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Elizabeth Court
Partner, Family Office
