A Family Investment Company (FIC) builds on the PIC concept but introduces an intergenerational dimension.
It is often used as a way to invest family capital while gradually passing value to the next generation.
This guide explains how FICs work and why families use them.
What Is a Family Investment Company?
A FIC is a limited company used to hold family investments.
Typically:
Parents (or founders) retain control through voting shares. Children hold growth shares.
This allows future growth to accrue to the next generation while control remains with the founders.
 "Family Investment Companies (FICs): Structuring Wealth Across Generations | Hamilton Financial")
Why Families Use FICs
FICs may help families:
Plan for intergenerational wealth transfer Retain control while introducing ownership Invest collectively Create governance structures
They are often considered alongside broader estate planning strategies.
 "Family Investment Companies (FICs): Structuring Wealth Across Generations | Hamilton Financial")
How the Structure Works
Different classes of shares can be created, for example:
Voting shares — control Growth shares — future value Income shares — distributions
This allows flexibility in how value and decision-making are separated.
Tax and Legal Considerations
FICs involve:
Corporation tax Dividend taxation Inheritance tax planning considerations Company law obligations
They must be carefully structured and maintained.
Professional advice is critical.
Governance Matters
Because FICs involve multiple family members, clarity is important:
Who makes decisions? When are dividends paid? What is the long-term purpose?
Without structure, misunderstandings can arise.
 "Family Investment Companies (FICs): Structuring Wealth Across Generations | Hamilton Financial")
Hamilton View
We see FICs as:
A long-term planning tool A way to combine education and ownership A framework for responsible succession
They work best where families value communication and structure.
Who Might Consider a FIC?
Families with significant investment capital Business-owning families Those planning lifetime gifting Families focused on stewardship across generations
A FIC is rarely the first step it is part of a broader strategy.
Hamilton Summary
A Family Investment Company can support orderly, thoughtful wealth transition.
It combines investment management with succession planning.
Used well, it strengthens both capital and continuity.
