What is a Family Investment Company and when might it be right for you?

At Wren Sterling, we’re spending more time than ever with clients discussing their long-term family finances. This has mainly been driven by a rise in the tax burden and the perceived future direction of government policy.
The goals haven’t changed but the rules of the game have. Clients want to ensure they’re able to preserve and grow wealth, but measures such as bringing pensions into inheritance tax (IHT) from 2027 are bringing conversations forward.
As you might expect, we’re helping clients to create trusts, but increasingly, at the top end of family wealth, we’re assisting clients with planning around Family Investment Companies.
For high-net-worth individuals seeking to preserve and pass on wealth efficiently, a Family Investment Company (FIC) offers a compelling alternative to traditional trusts. With rising estate values, many wealthier families are turning to FICs.

A Family Investment Company is a private limited company set up to hold and manage family wealth. Typically, the founder (often a parent or grandparent) provides capital to the company, which is then invested in assets such as property, shares, or other investments. The founder retains control through voting shares, while non-voting shares can be gifted to children or other family members.

This structure allows the founder to:

• Maintain control over investment decisions
• Introduce family members to wealth gradually
• Create a tax-efficient vehicle for growth and succession planning

Who might not Benefit?

Set-up costs can be significant. The time and expertise is spent in setting up the FIC. We work with private client law practitioners to ensure the wishes of the family are reflected in the structure, while allowing sufficient flexibility if circumstances change.
It’s typical for set-up costs to run from high four-figures to five figures, depending on the complexity of the FIC, so the potential benefits have to outweigh such costs.