quiz 2

What is a key qualitative reason families choose to establish a family office?

• To access hedge fund investments

• To avoid all tax liabilities

• To ensure privacy and trust in managing their affairs

• To receive FCA regulation

Which type of insurance is most commonly used to support liquidity in estate planning?

• Term life insurance

• Disability insurance

• Whole life or PPLI policies

• Property and casualty insurance

Why is governance critical in the structure of a family office?

• To maximize inheritance tax

• To reduce staff costs

• To promote decision-making continuity and oversight

What is a best practice when reviewing insurance as part of a family’s asset allocation strategy?

• Avoid insurance due to high fees

• Use only term insurance for liquidity

• Integrate life insurance into long-term asset allocation reviews

• Replace all assets with insurance policies

According to Deloitte, what is one of the integrated factors in deciding whether to form a family office?

• Ability to speculate in crypto

• Number of family business subsidiaries

• Family chemistry and alignment

• Use of external investment managers

What is a potential advantage of outsourcing specific services in a family office?

• Reduced ability to control family affairs

• Elimination of all fiduciary risk

• Cost-efficiency and access to expert capabilities

• Complete removal of in-house staff

Why should insurance discussions in family offices go beyond product selection?

• Because insurance is rarely used in HNW planning

• To reduce commissions

• To frame insurance as a tool within broader risk and liquidity management

• To avoid involving the family in the decision

What is one key challenge in staff compensation for family offices?

• Too many external candidates

• Regulatory salary caps

• Balancing performance incentives with fairness across market cycles

• Mandated bonuses under UK law

What is the main role of a Family Office Lab as per Deloitte?

• To test financial products

• To train children in investing

• To improve processes and innovation within the office

• To automate billing and payment

Why is life insurance considered a tax-efficient estate planning tool?

• It allows for aggressive tax avoidance

• It is always deductible

• In many jurisdictions, death benefits are tax-free and can fund estate liabilities

• It replaces the need for a will