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. 

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. 

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. 

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.