Family office management is full-service private wealth preservation and compliance services that serve Ultra-high-net-worth (HNI/UHNI) families and Non-Resident Indians (NRIs) including Indian Citizens settled abroad. Against a backdrop of challenging legal and regulatory requirements and the need for transparent financial compliance, family offices are under increased pressure at the operational as well as management level. Family offices are increasingly operating on a global scale, whilst often having only one local presence. Individuals serviced by these offices are more demanding and expecting family offices to focus on their core. (sentence does not sound accurate) Family offices generally provide accounting, Corporate secretarial, tax advisory as well as compliance, Succession planning, Philanthropy advice, Wealth management services, custodian activities, and other comprehensive services. 

With a family office, the family is able to directly oversee decisions about its financial matters. The family office management Services serves as a partner in the work of preserving the family’s assets along with channelising them for smooth transition to its next generation in a transparent manner. Further, many HNI/UHNI families rely on their family office to foster a sense of community and family unity over time with outsourced professionals.

To get your money’s worth, your family office manager should have a team of experienced and capable advisors well-versed in financial planning and tax planning within regulatory corners, which starts from managing existing wealth to planning future estate and retirement goals.

Portfolio Management Services (PMS) is a kind of wealth management service. Like mutual funds, they are managed by professionals known as portfolio managers. These experts offer a wide range of curated investment strategies to benefit from the available opportunities in the market. However, over the years, it is noticed that the professionals handling PMS are mainly associated with various securities and investment products available in Capital markets, but many times the regulatory or tax aspects are given the least of priorities. Therefore, Family office management plays a vital role in easing financial, regulatory as well as tax planning including compliances for avoidance of  high tax cost/ litigation.

Depends on case to case.

• Expenses on Family office management activities supporting family business succession and administration can be claimed as Business expenses from a trade or business.
• Expenses on family office management activities preserving wealth and its management can be claimed as expenses against return on Family investments. Investment expenses usually represent a large proportion of family office management costs, and their deductibility generally mitigate the net costs of running such an office.