Where does ZimpleMoney fit in your Family Office / Family Bank software services?
Professionally managing family loans, estate planning loans, loans for alternative investment, RE seller financing or selling a business is both specialized and important. ZimpleMoney is the family office / family bank professional single point solution.
Wealth Transfer, Seller Financing
One of the most significant benefits of a family bank is its ability to facilitate intergenerational wealth transfer. Many families struggle with passing their wealth down to future generations because of issues such as tax implications, estate planning, and family conflicts. A family bank can help families overcome these issues by providing a loan to facilitate the sale of a business, real property, or other assets.
Alternative Investment
Another benefit of a family office / family bank is its ability to provide investment opportunities for members. Many families have members who are interested in investing in a business started by a relative. A cash investment might be supplemented with an intra-family loan and secured by assets owned by the borrower or other family members.
A family bank can provide lower borrowing costs and more flexible terms than a bank, a financial institution, private lender, or investor. The members may also get a better return than they could otherwise receive from investments with similar risk profiles.
Estate Planning
One of the most significant benefits of a family bank is the tax advantages it offers. By establishing a bank, a family can take advantage of gift and estate tax exemptions. For example, in the United States, each individual can give up to $15,000 per year to another individual without incurring gift tax. Family members can pool their resources and take advantage of this gift tax exemption each year.
Intra-family Loans
A family bank can also be used to manage loans. Many families have members who need financial assistance for various reasons, such as starting a business, purchasing a home, or paying for education. A family bank can provide intra-family loans to members at a lower interest rate than traditional lenders, which can help them save money on interest payments to start a for profit or non-profit business.
Family Philanthropic / Impact Lending
Program Related Investments or Mission Investments are a powerful tool for foundations and other mission-driven organizations to align their investments with their social and environmental goals, while still achieving some financial return.
To qualify as a PRI under Section 4944 of the Internal Revenue Code (IRC) an investment must meet certain requirements and is a valuable tool for family banks and offices.
