For families looking to preserve and grow wealth across generations, a Family Investment Company (FIC) can provide a flexible and tax-efficient structure.
A FIC enables wealth to be invested, protected and transferred to future generations while allowing founders to retain control over investment decisions and governance. As a result, Family Investment Companies have become an increasingly popular alternative to traditional trust structures for long-term succession and estate planning.
At B P Collins, our corporate & commercial and private wealth teams work closely with tax advisers and financial professionals to help families establish and manage FICs that support their wider wealth planning objectives.
Speak with our experts to discuss whether a FIC could be the right solution for your family.
What is a Family Investment Company?
A FIC is a private company established to hold and manage investments on behalf of family members. Its primary purpose is to preserve wealth, facilitate succession planning and create a structured framework through which future generations can benefit from family assets.
Typically, a FIC may hold:
- Investment portfolios
- Property investments
- Cash reserves
- Shares and other investment assets
A carefully structured FIC can:
- Generate income for family shareholders
- Preserve and grow family wealth
- Facilitate the gradual transfer of wealth to children and grandchildren
- Support estate planning and inheritance tax planning objectives
- Allow founders to retain strategic control
Each FIC is bespoke and based on the share structures, governance arrangements and constitutional documents to reflect the family’s unique requirements.
You will find answers to common questions to FICs in the FAQs at the bottom of this page.
What does a FIC solicitor do?
Establishing a FIC involves considerably more than incorporating a company. Effective planning requires careful consideration of governance, succession, funding arrangements and tax implications.
With a wealth of experience in the corporate and commercial sector, our solicitors can assist with:
- Advising on the most appropriate company structure
- Creating bespoke share classes
- Drafting tailored articles of association
- Preparing shareholders’ agreements
- Advising on funding arrangements involving cash or assets
- Company incorporation and Companies House compliance
- Directors’ duties and governance matters
- Working alongside accountants and tax advisers
- Future restructuring and succession planning strategies
- Exit and wealth transfer planning
Why choose a FIC?
FICs can offer legal, governance and tax planning advantages for families seeking a long-term wealth preservation strategy.
Retain control of family wealth
Unlike some traditional wealth transfer structures, founders can retain decision-making authority through directorships and voting rights while gradually passing economic value to younger generations.
Support effective succession planning
Different classes of shares can be created to allow future generations to benefit from growth in company value whilst preserving strategic control for parents or grandparents.
Potential tax efficiencies
Investment growth and profits generated within a Family Investment Company are generally subject to corporation tax rather than personal income tax. The suitability of this structure depends on individual circumstances and specialist tax advice should always be obtained.
Flexible income distribution
Dividend arrangements can often be structured around the differing financial needs and tax positions of family members.
Asset protection benefits
Assets owned by the company remain legally separate from the personal assets of shareholders, helping to create an additional layer of protection from certain personal financial risks.
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Who should consider a FIC?
A Family Investment Company may be suitable for:
- High-net-worth individuals with surplus capital to invest
- Families seeking to transfer wealth to future generations
- Business owners who have realised capital following a sale
- Property investors with significant investment portfolios
- Individuals undertaking inheritance tax planning
- Families seeking greater control than may be available through a trust structure
- Those looking to create a long-term succession planning strategy
However, every family’s circumstances are unique. A FIC is not appropriate in all situations and professional advice should always be obtained before implementing any wealth planning structure.
Limited and Unlimited Family Investment Companies
FICs can be established as either limited companies or unlimited companies.
- Limited companies
A limited company provides liability protection for shareholders and is often chosen where the company holds property investments or other assets carrying potential commercial risk.
- Unlimited companies
An unlimited company may provide greater privacy because certain financial information may not need to be publicly filed. However, this benefit must be balanced against the absence of limited liability protection.
Selecting the most appropriate structure requires careful consideration of both family and commercial objectives.
Why choose B P Collins as your Family Investment Company solicitors?
Our approach is collaborative, strategic and commercially focused, ensuring that every FIC is aligned with a family’s long-term objectives.
With over 60 years of experience, we’re consistently ranked by Chambers UK and The Legal 500 for the strength of our corporate and commercial practice. Our solicitors have helped UHNW individuals, families and companies create and manage FICs with confidence and clarity.
Contact our Family Investment Company solicitors today
If you are considering a FIC as part of your succession, estate or wealth planning strategy, our experienced corporate & commercial team can help you assess whether it is the right solution for your circumstances.
Our specialists advise clients across London, Thame and Gerrards Cross on FICs, succession planning and wealth protection strategies, and can be contacted on 01753 889995 or at enquiries@bpcollins.co.uk.
