Washington has already defined what is “rich.” Now they’re defining what counts as “family” for the rich, the Wall St Journal reports. The definition is part of Dodd-Frank and applies to family offices – the private operations used by rich people to manage their investments, personal bills and philanthropy. Family offices will be exempt from registering with the SEC under the new law. But hedge funds and private-equity firms have to register. So to make sure hedge funds can’t just call themselves family offices, the SEC issued a set of guidelines on what counts as “family” for a family office.
Here’s the official definition of family members:
“Family members include all lineal descendants (including by adoption, stepchildren, foster children, and, in some cases, by legal guardianship) of a common ancestor (who is no more than 10 generations removed from the youngest generation of family members), and such lineal descendants’ spouses or spousal equivalents.”
For instance in-laws no longer count as family — which may be happy news to some wealthy husbands and wives, but bad news for the in-laws. Some cousins, uncles and nieces and nephews are also out….
Find out more at http://blogs.wsj.com/wealth/2011/07/27/government-defines-who-is-family-for-the-rich/
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