- 12 December 2022
- Corporate and M&A
At Clarkslegal we have assisted a number of clients in setting up family investment companies (FICs) to protect their hard-earned money. This popular option could be the solution for those looking to grow their wealth and protect it for future generations.
What is a Family Investment Company?
FICs are created to hold assets for the benefit of an individuals’ estate. They can take different forms and are tailored to a particular client’s needs and the assets that they will hold. FICs typically invest in a wide variety of assets including equities, property, precious metals and artwork.
For those who value privacy, an unlimited company can be used, whereas a limited company is a more common vehicle. There is a lot of flexibility around how the management can be set up to regulate the investment and they can be structured to allow the person setting up the company degrees of control to match their individual preference.
FICs are generally set up for the long-term, and after the initial capital contribution can see shareholders profit from the compounding growth of their investments.
There is a lot of flexibility around how the management can be set up to regulate the investment.
What are the benefits?
FICs offer an effective means for families to protect their wealth from divorce, undue influence, or other unforeseen circumstances – ensuring that assets are protected for generations to come. They can also offer tax exemptions when making initial gifts to beneficiaries and when investing in equities.
If you think that you could benefit from learning more about family investment companies, contact our corporate team for further information.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.
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