Family Investment Companies in Focus: Strategic Wealth Planning for Families

Definition and Purpose of Family Investment Companies (FICs)

• A Family Investment Company is a bespoke corporate structure used by private clients to manage and grow family wealth over the long term.
• It allows individuals to retain control while gradually involving the next generation, making it a valuable tool for succession planning.
• FICs are particularly suited to those with surplus capital who want to invest strategically and pass on wealth in a controlled, tax-efficient way.

Key Points from the Discussion

1. FICs offer flexibility in how assets are held and distributed, with cash being the simplest to transfer.
2. Personal-use properties, such as family homes or holiday homes, should be excluded due to adverse tax implications.
3. When combined with trusts, FICs provide enhanced asset protection and multi-generational planning.
4. Trusts can hold shares from the outset, helping mitigate inheritance tax and safeguarding wealth for future generations.
5. Legal documents can be tailored to include protections such as prenuptial requirements and restricted share transfers, ensuring wealth is preserved in line with the founder’s intentions.

Next Steps

If you’re considering a Family Investment Company as part of your wealth planning strategy, it’s essential to seek expert advice early.

Structuring the company and any associated trusts correctly from the outset can unlock long-term benefits and avoid costly pitfalls.

To explore whether a FIC is right for your circumstances, please get in touch with your usual Blick Rothenberg, or Suzanne using the form below.