Most Ghanaian families do not need a full-scale Single-Family Office (SFO). Instead, they can achieve the essential protection through more pragmatic structures. Here’s a hierarchy of options, from least to most formal:
1. The Bare Minimum – Foundational Steps This is the absolute baseline for wealth protection and can be deemed essential for most families. Here are some useful recommendations:
Create a Robust Succession Plan: Work with a skilled lawyer to draft a clear succession plan to be implemented in the lifetime of the founder, as well as a legally unambiguous will or deeds of gift, whichever is preferable. For business assets, consider trusts and well-defined shareholding structures.
Initiate Family Communication: Start holding formal family meetings to discuss the future of the wealth and the business(es). This is the seed of family governance.
Financial Education: Initiate the process of consciously educating the next generation about money, business, and responsibility.
2. The Virtual Family Office – This is often the most efficient and effective model for families with wealth between $5 million and $50 million. A virtual “family office” is built by assembling a team of experts as follows:
An Independent Financial Advisor/Asset Manager: Responsible for creating a diversified investment strategy for both local and international assets, beyond the family’s core business.
A Law Firm or Legal Advisor: To handle the complex legal structures, draft a family constitution, wills, and trusts and facilitate family meetings.
An Accounting Firm or Tax Consultant: To manage tax planning and compliance. An individual who is a trusted family member, the patriarch/matriarch or a senior, or financially literate child, acts as the “Convener or Coordinator” of this virtual team. This designation ensures the performance of essential functions without the overhead of a full-time staff.
3. The Multi-Family Office – (MFO) For families that prefer a more integrated service, partnering with a Ghanaian MFO or a sophisticated wealth management firm is an excellent option. They provide the core functions of investment management, estate planning, and some governance support, all in a packaged, cost-effective way by serving multiple families.
4. The Dedicated Single -Family Office (SFO) This is only essential for families with wealth exceeding $100-$200 million, where the complexity and scale justify the multi-million-dollar annual operating cost.
Conclusion
Protecting family wealth in Ghana is not about putting a “Family Office” sign on a door. It is about consciously and systematically implementing the disciplines of strategic planning, governance, and professional advice. Therefore, while a formal family office structure is not essential, the mindset, strategies, and core functions it represents are absolutely critical for any Ghanaian family serious about preserving its legacy beyond the founding generation.
August Law, our estate planning team appreciates the importance of protecting family wealth and is dedicated to guiding families every step of the way. We are here to help you create a customized succession plan as well as put in place systems that ensure the preservation of family wealth for generations.
Consult us today to take the first step toward securing your family’s future.
