Passing on wealth is one thing. But how do you keep control?
Are we asking the wrong question when we compare Family Investment Companies (“FICs”) and trusts?
In this piece, Sarah Bell, Senior Manager, Family Office at Altum Group explores what’s really changing and the strategic shifts taking place with a push towards governance, control, and how families are thinking long-term.
A Practical Approach to Long-Term Family Wealth
This shift is driving more families to explore FICs to balance wealth succession whilst maintaining control.
Families now prioritise structures that give them visibility, tax efficiency, control, and early engagement with the next generation are no longer secondary considerations, they are the starting point.
A Different Way of Holding Family Wealth
At its core, a Family Investments Company (“FIC”) is a private company used to hold and manage family investments. Family members are typically shareholders and often sit on the board, with the company holding a range of assets.
For families where wealth has been built through business, this model feels familiar. It mirrors the dynamics they already understand: ownership, governance, and controlled transfer of value over time.
Why FICs Are Gaining Momentum
The increased use of FICs reflects more than technical developments, it signals a shift in mindset.
While changes to trust taxation have played a role, families are increasingly focused on:
- Retaining control while planning for succession
- Establishing clear governance and accountability
- Involving the next generation earlier in decision-making
A FIC can act not only as an investment vehicle but also as a governance framework, helping families organise and manage wealth in a structured and transparent way.
Why Jersey?
Jersey continues to be a natural fit for FIC structures, particularly for internationally mobile families.
- Stable and efficient environment: Jersey’s tax-neutral regime supports long-term wealth accumulation, alongside a well-established legal system.
- Flexibility in distributions: Profits can be distributed in a way that reflects individual needs and tax positions.
- Phased succession: Shares can be transferred gradually, allowing a phased approach to wealth transfer while retaining control.
For families operating across jurisdictions, that combination of neutrality and stability is key.
Real-World Scenarios
How Altum Supports Families
At Altum, our approach is relationship-led. We focus is on understanding each family’s priorities and desig solutions that reflect their specific circumstances.
Our support includes:
- Structuring and establishing FICs in coordination with legal and tax advisers
- Providing ongoing administration, accounting and governance support
- Acting as, or supporting, boards with professional directors
We also work closely with families over the long term, wealth generators and their family, helping the next generation engage meaningfully, and providing continuity as structures evolve.
Final Thoughts
FICs offer a practical and flexible framework for managing wealth across generations. For families seeking control, clarity and a more hands-on approach, they represent a powerful addition to the structuring toolkit, particularly when supported by strong governance and experienced advisers.
As is always the case appropriate independent tax and legal advice should be sought prior to the implementation of structuring.