What is a Family Office?
A Family Office can be described as a company that lends support to families with complex necessities inherent of their wealth by coordinating and organizing the most diverse subjects that involve their family assets.
Besides asset allocation, what other services does a Family Office offer?
Financial counseling, asset consolidation both in Brazil and abroad, succession planning and Trust coordination, tax planning, accounting, philanthropic planning, personal services and family education.
Is it necessary for me to open an account with Turim in order to become a client?
No. We act as managing financial director of the families, representing the client with bank relationships and all other investment partners. A client only signs a contract for provision of services.
Will my family members have access to the information pertaining to my investments?
It is optional and should be decided by all family members at the moment the contract is signed.
With Turim, is it possible for me to see all my investments in a consolidated way?
Yes, both our clients and our team can have a global vision of the investment portfolio, which facilitates the decision making process regarding each investment strategy, eliminating risks arising from a non-diversified portfolio.
Will the financial transactions be operated by Turim?
Preferably, yes. Besides facilitating us to have a better control of assets consolidation, it allows our team to analyze which product should be used for liquidity, for example.
What is a Trust? What is it for?
A trust is a document between two parties, where one (the asset holder) hands over to the other (Trustee) the power to hold the assets' property for the benefit of one or more parties, known as Beneficiaries. Normally, the one who delivers the assets is called the First Beneficiary. It is commonly used to define the inheritance of foreign assets. Brazilian jurisdiction doesn’t recognize the Trust. The Trustee is the legal proprietor of the assets in the Trust, but they are maintained in favor of the Beneficiaries.
Does Turim have its own investment vehicles?
No, with some exceptions to allow for specific investments.
Is it possible to control withdrawals from the family fund?
Yes. There are mechanisms that enable us to control or even limit the pre-established quantities to be withdrawn and their periodicity.
How is Turim remunerated?
We are solely paid by the families. We do not accept rebates from banks or from any other financial institution, eliminating any conflict of interest. The families remunerate us through administration fees and performance-based fees, semiannually.
Is my day-to-day bank account the same as the one used for my investments?
No, and we highly recommend that they should be different for security reasons.
What is an exclusive fund?
It has all the characteristics of a traditional investment fund, but it is structured to serve a Single or restricted number of shareholders that partake in the same investment objectives, usually a family.
What are the advantages of an exclusive fund?
Tax advantages – the transactions or allocations between funds are tax-exempt. Income tax is only due when the individual shareholder sells the investments. Automatic compensation of Income Taxes – the calculation basis for income taxes takes into consideration earnings and losses obtained with the investments during this period. Thus, income tax is levied on the profitability of the product, in this case, the exclusive fund. Ease of Registration – Instead of using the client’s individual taxpayers’ registry (CPF), the Brazilian Corporate Taxpayers’ Registry of the Ministry of Finance number (CNPJ) of the exclusive fund is used, preventing a large number of people from gaining access to the investor’s information. Confidentiality – Shareholder privacy is maintained, as the financial institutions involved in transactions with the exclusive fund only have access to the fund’s CNPJ number.
Is it possible to know what is the maximum amount I can periodically withdraw in order to have my money last forever?
Yes. After establishing some profitability assumptions and considering both inflation and the total amount invested, we can estimate the maximum periodic withdrawals tolerable so that the money lasts forever.
I want to benefit one of my offspring with donations whilst still alive and use my will to benefit the others. It is possible?
You can, as long as you respect the minimum limit per heir established by Brazilian laws regarding succession, as found in the Brazilian Civil Code of 2002 (Law n.º 10.406/2002).
In my absence, will my spouse or children have cash flow problems?
Depends. If your heirs already have liquid investments at the time, then there won’t be any problem. Otherwise, it's recommended to have life insurance or investments in pension funds.
What is the best corporate structure for my Family Office?
It’s a team that combines extraordinary workers that are stimulated and that seek results. This structure is obtained when the Family Office adopts the partnership model.
Does it make a difference if my Family Office is associated with a financial group?
Yes, because when there's a connection to a financial group there is always the possibility of conflict of interest.
Will my Family Office sell me products?
No, your Family Office should buy products and offer services, but never sell products.
Does the number of clients (and their sizes) of a Family Office influence on the quality of their services?
Yes, because if your Family Office is too small it won’t retain its talented professionals and have a negotiating power. It also shouldn’t too big because it might influence the quality of the services offered and their customization.
Should your Family Office be prepared to aid you with international investments?
Yes, in a globalized world where events in certain markets influence other markets and economies, it is essential that families' assets be invested with a global bias.
Are pension funds a good investment?
Despite some specific regulatory limitations, the assets invested in pension funds are essentially the same of those of traditional investment funds. Usually, pension funds found in traditional markets have elevated costs, but, with exclusive vehicles, it is possible to negotiate comparable fees of those of investment funds. Turim created the first exclusive pension fund in Brazil.
Can Turim help me with my children’s financial education?
Yes. We believe that receiving an inheritance is significant but being prepared to administrate it is just as important.
Is Turim capable of coordinating all of my different advisors?
Yes. Your Family Office should be able to coordinate all of the advisors necessary for maintaining your family’s wealth. Some of these include lawyers, auditors, insurers, banks, asset managers, among others.
What are the advantages of a Multi-Family Office?
A Family Office should be able to: remunerate its collaborators in order to retain the most talented professionals, provide personalized services with a wide range of expertise, negotiate lower fees due to their scale and build a relationship with several agents in the financial market.
What are the disadvantages of a Single-Family Office?
Some of the disadvantages are: the difficulty in paying its collaborators competitive wages, impairing their ability to retain the best professionals, less power to negotiate lower fees and fewer learning opportunities when it comes to different scenarios that may arise.
How does Turim control my investments?
Turim monitors a client’s investments from the start, since the earlier stages of analysis to the moment of actually investing. It does so by controlling the operational process, confirming the settlement of the investment and checking of the bank statements. Finally, Turim compiles all investments in a personalized statement for each client using our internal IT system that is developed and maintained in-house.
How does Turim keeps it clients’ confidentiality?
By having a low turnover of employees that sign confidentiality contracts concerning both the company's and the clients' privacy, by utilizing a system that is developed in-house, by exclusive funds and with well delineated processes.
Is a Family Office capable of analyzing a client’s financial risks?
The client’s investment profile should be defined, studied, analyzed and constantly compared to the assets that make up the portfolio. This is done by utilizing quantitative and qualitative methods that verifies adequacy.