How to run an estate like a business. This free staff management ebook offers tips on: • How to assess staffing needs and recruit domestic personnel. • What legal and tax regulations are required for employers • Why risk management is a critical component of estate management.

1. Staff Management
The Care & Keeping of Your Principal’s Estate
© 2015 INGUARD®

2. TABLE OF CONTENTS
Introduction: How to Hire for High Net Worth Estates ……………..….. 2
Chapter 1: Staff the Principal Home Appropriately …………………….. 3
Chapter 2: How to Recruit Domestic Personnel ………………………… 7
Chapter 3: Legal & Tax Considerations …………………………………. 16
Chapter 4: Risk Management Best Practices …………………………… 22
Conclusion ………………………………………………………………..… 27
The Care & Keeping of Your Principal’s EstateINTRO | PAGE 1

3. Operating a fully functional estate requires more than an estate or business
manager at the helm. It often demands a network of domestic workers,
landscapers and groundskeepers, drivers, child care providers and more to keep
a household running smoothly.
!
The staffing and management of a household is a weighty task, with employees
often being one of the biggest—and more overlooked—risks for high net worth
individuals. Responsible estate management should take into account the
principal’s needs in regard to hiring, human resources and risk management,
employing best practices and due diligence in all areas. The principal and
employees deserve a fully professional experience from first to last day on the
job.
!
In short, it’s time to run your employer’s home like a business. Here’s how….
INTRODUCTION | How to Hire for High Net Worth Estates
INTRO | PAGE 2

4. Chapter 1
Staff the Principal Home Appropriately

5. According to estate manager-turned-household advisory specialist
Teresa Leigh, there are 50 generally recognized household titles.
These household management roles, which range from cleaning and
child care, to interior design and accounting, must either be staffed
or outsourced to a vendor.
!
It is the estate or business manager’s responsibility to determine the
extent of services necessary, and which positions should be brought
in-house. For example, the principal may wish to have a permanent
groundskeeper, but depending on the number and size of held
properties, and available budget, it may be more cost-effective to
outsource the work to a landscaping firm.
CHAPTER 1 | PAGE 4
Staff the Principal Home Appropriately

6. Build a Household Organizational Chart
!
A household’s organizational chart can vary widely based on the size
and complexity of the estate. Positions may be as broad as “executive
housekeeper” or as narrow as “ironer.” Consider for each area of
responsibility:
!
Approximately how many hours are needed each week?
Is this an ongoing need, or a seasonal one?
What is the estate’s staffing budget?
What is a competitive salary for this position? Vendor rates?
CHAPTER 1 | PAGE 5

7. Use a spreadsheet, like the one below, to determine the appropriate household
positions. Based on the weekly hours needed, see if multiple needs can be
combined into a “generalist” household position.
!
Once completed, research compensation levels commensurate with each
position and predefined staffing budget. Also consider the added responsibility
of any salaried positions. In Chapter 3, we outline the legal and tax requirements
for household employees.
Need Est. Weekly Hours Seasonal? Notes
Lawn and
groundskeeping
services
5 No May be best to outsource; research local vendors
CHAPTER 1 | PAGE 6

8. Chapter 2
How to Recruit Domestic Personnel

9. After you determine the needed roles for the household, you can
begin to recruit personnel and research vendors for outsourced
needs. One of the biggest mistakes high net worth and celebrity
employers make is to hire assistants, drivers or other positions based
on familiarity or friendship rather than merit.
!
If the estate or business manager (an objective third party) is given the
responsibility of hiring and staff management, it places a buffer
between the principal and friends or family looking for a job, and
ensures properly vetted and qualified candidates are hired.
How to Recruit Domestic Personnel
CHAPTER 2 | PAGE 8

10. The Importance of Job Descriptions
!
When you are ready to hire, draft job descriptions for each position.
Create individualized, documented job descriptions that will help you
in several ways:
!
Attract qualified candidates
Align desired roles with the principal’s expectations
Outline job expectations, for later use in management and
performance evaluations
Provide a reference for compensation and hiring decisions
How to Recruit Domestic Personnel
CHAPTER 2 | PAGE 9

11. Additionally, job descriptions might include:
!
Location where the work will be performed
Equipment, educational/training or certification requirements
Salary range or other description of compensation and benefits package
!
Job descriptions should be specific, action-oriented and tailored to each
position. They typically include:
!
Job title
Job objective
Summary of the general nature of the job
Description of area(s) of responsibility
List of duties or tasks critical to success
!
CHAPTER 2 | PAGE 10
Related Resources:
Writing Effective Job Descriptions
Think Before You Hire: Maintain a
Legal Hiring Process

12. Pros and Cons of Placement Firms
!
Some estate managers turn to domestic staffing or placement firms to
recruit candidates. Placement firms save you time and allow you to
rely on their network and expertise, but their fees might cut into your
budget for compensation packages.
How to Recruit Domestic Personnel
Pros Cons
Reduce time and effort spent on recruiting and
vetting.
Additional fees for services.
Establish an objective third-party to evaluate
candidates, ensuring hires are based on merit and not
personal relationships.
May place restrictions or standards for staff
management or compensation.
Quickly fill roles by sourcing from a pool of pre-
screened candidates.
Outsource recruiting and vetting to human resource
professionals.

13. Screen Candidates: The Pre-Interview Process
!
All hires should follow a standard hiring process. As a best practice,
include the following conditional employment practices:
!
Background check: Run a thorough background check for:
○ Address verification
○ Criminal history, sex offender check
○ DMV status report
○ Drug testing
○ Immigration status check
○ Search of all previous aliases
○ Social Security verification
○ Verification of prior employment
How to Recruit Domestic Personnel
CHAPTER 2 | PAGE 12

14. !
Nondisclosure agreement (NDA): Depending on the principal and
nature of the work, at some point in the interviewing or hiring
process, every person you hire should sign a nondisclosure
agreement to guarantee discretion.
Reference check: Confirm each candidate’s qualifications and
character by checking with submitted references.
Resume: Review prior work history, experience, education and other
qualifications.
CHAPTER 2 | PAGE 13
Screen Candidates: The Pre-Interview Process (cont.)

15. !
Pre-employment physical: Confirm the candidate is capable of
performing all job duties. A thorough health assessment can also
protect the employer from fraudulent or avoidable workers’
compensation injuries, in the case of a pre-existing injury or health
condition.
Workers’ compensation screening: Investigate whether candidate has
any past history of workers’ compensation claims or fraud.
Additional vetting: Look into candidate’s background for red flags,
such as past lawsuits or issues with former employers. Confirm
candidate has job-specific requirements (i.e. a valid driver’s license
and car insurance for a driver; CPR certification for a caretaker).
CHAPTER 2 | PAGE 14
Screen Candidates: The Pre-Interview Process (cont.)

16. When should they sign an NDA?
!
All hires should sign a nondisclosure agreement in order to guarantee discretion
throughout their employment. But when to require this during the hiring process
depends on the status of the principal, the nature of the job and your relationship
with the candidate.
!
If the principal has a very high status or greatly respects his/her privacy, or if
discussing the job requires disclosure of highly sensitive information, a signed NDA
might be a requirement prior to the interview. However, if job details are not
confidential, or if you know a candidate well enough to trust his/her discretion, an
NDA might not be necessary until an employment offer is made. When in doubt,
exercise caution. !

17. Chapter 3
Legal & Tax Considerations

18. If the household is a business, the estate manager is its CEO.
You must protect the principal’s legal and financial standing by
adhering to all statutory employer requirements.
!
Note: Consult the appropriate legal and tax professionals to ensure your practices are
compliant with state and federal legislation and union regulations.
!
Employee Payroll Taxes Required by Law
!
Statutory payroll taxes must be withheld from an employee's
paycheck. Employers must submit the following:
!
● Federal income tax withholding
● Social Security tax withholding
● Medicare tax withholding
● State income tax withholding
● Local tax withholdings (i.e. city, county or school district
taxes, state disability or unemployment insurance)
CHAPTER 3 | PAGE 17

19. Voluntary payroll deductions, which may be withheld from an
employee's paycheck if the employee has agreed to the deduction,
may include:
!
● Health insurance premiums (medical, dental, vision)
● Life insurance premiums
● Retirement plan contributions (such as a 401(k) plan)
!
Employer Payroll Taxes Required by Law
!
The employer is also responsible for paying a portion of payroll taxes
beyond the expense of an employee's gross pay. The employer’s
portion of payroll taxes includes:
!
● Social Security taxes
● Medicare taxes
● Federal unemployment taxes
● State unemployment taxes
● FICA taxes

20. Once paychecks have been issued, the employer is responsible for:
!
● Paying the employer's share of payroll taxes
● Depositing withheld tax dollars in a timely manner
● Preparing reconciliation reports
● Reporting payroll tax obligations and expenses
● Filing payroll tax returns
!
Payroll tax reporting requirements include:
!
● Making federal tax deposits
● Annual federal unemployment tax return (Form 940 or 940EZ)
● Employer's quarterly payroll tax return (Form 941)
● Annual Return of Withheld Federal Income Tax (Form 945)
● Wage and Tax Statements (Form W-2)
Additional Employer Tax Responsibilities
CHAPTER 3 | PAGE 19

21. CHAPTER 3 | PAGE 20
Insurance Policies Required by Law:
!
● Disability insurance: Some states require that employers provide
partial wage replacement insurance coverage in the event of
non-work-related illness or injury.
!
● Unemployment insurance: Most employers are required to pay a
federal and state unemployment insurance tax.
!
● Workers’ compensation insurance: Workers' compensation
insurance provides medical coverage and partial wage
replacement in the event of work-related illness or injury.
Workers' compensation requirements are mandated by state
legislature.
!
Note: If employees cross state lines, or travel as part of their job requirements, you
may need to modify their insurance accordingly.

22. CHAPTER 3 | PAGE 21
Employer Tax Resources
● Small Business Forms and Publications
● Independent Contractor (Self-Employed) or Employee?
● Employment Tax Due Dates
● Depositing and Reporting Employment Taxes
!
Employee Tax Resources
● Insurance Requirements for Employers
● Federal Unemployment Tax

23. Chapter 4
Risk Management Best Practices

24. High net worth individuals are more likely to be the primary target of
a lawsuit due to the additional attention drawn to their deep pockets
and public prominence. Employees are possibly the biggest, and the
most overlooked, risk for high net worth and celebrity individuals.
!
Risk management is a comprehensive and proactive approach to
identifying, and offsetting, liability and risk. This chapter addresses
best practices in domestic personnel risk management.
Risk Management Best Practices for Estates
CHAPTER 4 | PAGE 23

25. Risk Management Best Practices for Estates
● Vet all employees. Hiring friends is one of the biggest mistakes made,
because it often does not take the individual’s qualifications into account.
Additionally, blurring the lines between friends and family, or employer and
employee, makes it difficult to manage the relationship in a professional
manner. Personal assistants, drivers, nannies, household employees, cleaning
staff and all other hires should be properly vetted via a standard hiring
procedure.
!
● Create a professional workplace. When estate managers run a household
like a business, it creates an expectation of professionalism on the parts of the
employer and the employee. All positions should have a formal contract in
place and employee guidelines. The contract outlines job-specific roles,
responsibilities and expectations. This document can be used later in
performance and compensation conversations, or referenced in the event of
an unfair termination lawsuit.
CHAPTER 4 | PAGE 24

26. CHAPTER 3 | PAGE 18
● Demand discretion. For the protection and privacy of the
principal, all new hires must sign an NDA and confidentiality
agreement.
!
● Secure adequate coverage. This includes legally required
policies such as workers’ compensation, and other insurance
best practices, including employer’s liability and employment
practices liability. Make sure the employment practices liability
policy is set to an adequate limit (at a minimum of $1 million).
!
An experienced risk management professional can help you
identify exposures, secure appropriate insurance coverage, and
consult on employee management best practices.
CHAPTER 4 | PAGE 25
Risk Management Best Practices for Estates

27. What is Risk Management?
!
Risk management strategy begins with risk identification. Clients and their
counselors might identify risks with the help of checklists, in-depth interviews,
site visits, asset inventories, activity logs and other research.
!
Once identified, risks can be prioritized based on potential severity and relative
likelihood of harming the principal personally or financially. Then, solutions can
be considered, and a risk management program executed.
!
In short, risk management is more comprehensive than insurance, and is tailored
to the unique lifestyle and liabilities of the client.

28. Wealth and fame bring both privilege, as well as responsibility. Protect your
employer by following employment and human resources best practices. When
specialized guidance is needed, high net worth risk management can help
preserve and perpetuate their livelihood.
INGUARD consultants develop tailored risk management programs for
celebrities and high net worth individuals and families, to protect and preserve
wealth. Our risk management consultants work with you and your client to
develop an appropriate, responsible risk management strategy.
We provide guidance and consultation on potential vulnerabilities, legal and
regulatory requirements, and risk management best practices. If you’d like to
learn more, contact INGUARD to schedule an initial consultation.
CONCLUSION | PAGE 27
CONCLUSION | The Care & Keep of Your Principal’s Estate

29. Previously Beauchamp McSpadden | Morrison Galliher, INGUARD is an insurance
and risk management firm headquartered in Wabash, Indiana, providing holistic
insurance and risk management consulting services to individuals, families and
businesses. INGUARD specializes in niche markets and portfolios with complex
needs, including celebrities and high net worth individuals and families.
INGUARD provides personalized financial and insurance consulting services to
illuminate areas of risk. Learn more about INGUARD at www.INGUARD.com.
About INGUARD