family office services
DESCRIPTION
Family Office Services offered by Cheng & Co Trust Int'l LimitedTRANSCRIPT
Family Office Services
Succession Planning and Wealth Management through
Labuan Foundation
Family Office Services
What is family business and who requires family office services?
Who requires Family Office services?Who requires Family Office services?
Businesses involving one or more than one family is known as family business and family businesses typically requires Family Office services for wealth management purposes.
Family Office Services
What are the typical problems encountered by family businesses?
Typical problems encountered by family Typical problems encountered by family businesses…businesses…
Conflict of interest among family members
Lack of succession planning
Decrease in leadership drive
Flat growth to the company
Heirship
Family Office Services
What is the typical structure of family businesses?
Typical structure of family businesses…Typical structure of family businesses…
Founder (1st Generation)
Immediate Members (2nd Generation)
Extended Family(3rd Generation)
Family Office Services
What does family office services cover?
Family Office
Services
Succession Planning Services
Risk Management
Services
Wealth Planning Services
Trust Management
Services
Asset Management
Administrative Services
Tax and Legal
Services
Charity Services
Family Office Services
Where do we start?
Family Office Services
First, set-up a Labuan Foundation…
Succession Planning Services
Labuan Foundation
A Labuan Foundation will be set-up for company and family governance
purposes under our Family Office services
Succession Planning Services
Labuan Foundation
Business will operate as usual…
Ownership issues will be also be taken care…
Family governance in place…
Family Office Services
Use a Labuan Foundation instead of a Company or a Trust because…
Foundation is like a hybrid structure of a company and a trust
A Labuan Foundation is a combination of Company and a Trust…
You get the best of both world…
A Company has the flexibility to change its structure by passing a board resolution…
A Trust provide asset protection by segregate personal asset and business risks...
A Labuan Foundation has both the characteristics of a Company and Trust…
Family Office Services
Setting up a Labuan Foundation…
Labuan Foundation requires the following key personnel…
Founder
* Founder can act either as council member or officer
Council Member
Officer
* Officer should not be related to council member
Secretary
Beneficiary
Family Office Services
Optimizing ownership with Labuan Foundation…
Wealth creation & protection
Risk diversification
Liquidity management
Leverage
Optimization of Ownership…
Family Office Services
Benefits to your business using Labuan Foundation…
Wealth creation & protection
Enhanced company value protection
Mitigation of intergeneration conflicts
Balance asset & liability management
Additional source of wealth & income
Business…
Family Office Services
Benefits to your family using Labuan Foundation…
Family…
Family culture & values
Family governance
Compensation schemes
Wealth preservation
Succession planning
Risk assessments & profiles
Individual financial & tax planning objectives
Sucession Planning
Do you have in mind who will be the next key personnel?
Succession Planning:Key values for determination of the next leader…
Characteristics(initiative, creative thinking)
Succession Planning:Key values for determination of the next leader…
Behavior (integrity, commitment)
Succession Planning:Key values for determination of the next leader…
Competency(knowledge, skills, talents, experience, abilities)
Succession Planning:Key values for determination of the next leader…
Strategic thinking(Dynamic, tactical, enterprising, entrepreneurial)
Succession Planning:Key values for determination of the next leader…
Relationship / Network building(Charisma, diplomatic, team player, cooperative)
Labuan Foundation
Structure of Labuan Foundation(Non-charitable)
Distribution
Labuan Foundation
Transfer of Assets
Manage Manage Manage
The structure of a non-charitable private foundation
What if the Foundation is established for charitable purposes?
If the Foundation solicits funds/donations from the public….three (3) additional personnel shall be required…
Labuan Foundation
Structure of Labuan Foundation(Charitable)
Distribution
Charitable Foundation
Transfer of Assets
Manage Manage Manage
Additional Personnel
Labuan Foundation
Example of restructuring Labuan Foundation into a family business…
Family business owned by 3 brothers before restructuring…
Business Operations
Local Company
Shareholders
55% 30% 15%
Labuan Foundation
First step of restructuring…Set-up a separate Labuan Foundation
for each family…
Distribution
Labuan Foundation for Mr A family
Transfer of Assets
Manage Manage Manage
For each family, set up a private foundation…
Distribution
Labuan Foundation for Mr B family
Transfer of Assets
Manage Manage Manage
For each family, set up a private foundation…
Distribution
Labuan Foundation for Mr C family
Transfer of Assets
Manage Manage Manage
For each family, set up a private foundation…
Labuan Foundation
Then, set-up a main Labuan Foundation for each Family Foundation…
Proposed Structure
Controlling Stakes
55% 30% 15%
Contact us for more information…
Cheng & Co Trust International Limited
www.chengcotrust.com
Telephone: +603-79848988 | Fax: +603-79844402Website: www.chengcotrust.com | e-mail: [email protected]
Kuala Lumpur Office: No 16-G, Jalan 2/114, Kuchai Business Centre,
Off Jalan Klang Lama, 58200 Kuala Lumpur
Labuan Office: Lot 2(a), Level 4, Wisma Lazenda, Jalan Kemajuan,
PO Box 81840, 87000 Labuan FT