The Ultimate Family Office Guide

For most people, managing wealth means having a financial advisor or maybe an accountant. But for ultra-high-net-worth individuals (UHNWIs)—think families with $250 million+ in assets—the needs are significantly more complex. Enter the family office: a bespoke, behind-the-scenes engine that quietly manages fortunes, preserves legacies, and supports everything from investments to education planning.

If you’re new to this world, this guide is your go-to blueprint. We’ll break down what family offices are, what they do, and how they’re structured—without jargon or fluff.

What Is a Family Office?

A family office is a private wealth management firm that serves one (or a few) ultra-wealthy families. Unlike traditional financial advisors or private banks, family offices are holistic and highly customized—they go beyond investment advice to oversee a family’s entire financial, legal, philanthropic, and even personal life.

Think of it as a private company set up by a family, for the family—handling everything from managing a real estate portfolio to helping a child enroll in college abroad.

Types of Family Offices

There are two primary models:

1. Single Family Office (SFO)

Serves one family.
Fully customized, often includes dedicated staff like CIOs, lawyers, accountants.
Expensive to run—usually makes sense for families with $250M+ in assets.

2. Multi-Family Office (MFO)

Serves multiple families, sharing infrastructure and staff.
More cost-efficient for families with $30M+ in assets.
Operates more like a boutique wealth management firm.

Some firms also offer virtual family office (VFO) services, where services are outsourced and coordinated remotely.

Core Services Offered by a Family Office

Family offices are not one-size-fits-all. But generally, they cover these categories:

1. Wealth & Investment Management

Portfolio strategy
Alternative investments (PE, VC, real estate)
Risk management
Tax-efficient structuring

2. Estate & Succession Planning

Trusts and wills
Intergenerational wealth transfer
Governance frameworks
Education for heirs

3. Tax & Legal Advisory

Complex tax strategy (domestic and international)
Legal compliance and entity structuring
Representation in audits or disputes

4. Philanthropy & Impact Investing

Setting up and managing foundations or donor-advised funds
ESG-aligned investing
Legacy-focused initiatives

5. Lifestyle & Concierge Services

Property management
Family security
Travel planning
Private education and healthcare support

Family Office Structure: Who Runs It?

The structure depends on the size and complexity of the family’s needs, but here’s a typical setup:

Chief Investment Officer (CIO) – Leads investment strategy and portfolio allocation.
Chief Financial Officer (CFO) – Oversees financial reporting, budgets, and cash flow.
General Counsel – Handles legal matters and compliance.
Philanthropy Director – Manages charitable activities and impact strategy.
Family Office CEO – Runs day-to-day operations, often acts as the family’s right hand.

Some family offices also include:

Accountants
Analysts
HR/Operations
Executive assistants
Security personnel

The key principle? Trust and discretion. These teams often become deeply embedded in the family’s life and legacy.

How to Set Up a Family Office

If you or your client are considering launching one, here’s a step-by-step breakdown.

Step 1: Clarify Your Objectives

What do you want the office to achieve?
Is it investment-first, legacy-focused, or service-oriented?

Step 2: Assess the Scale

Is your net worth $30M or $500M?
Can you justify a full team or is an outsourced model better?

Step 3: Choose the Model

SFO: Full control, full cost.
MFO: Shared services, more efficient.
VFO: Lean and digital.

Step 4: Choose the Legal and Operating Structure

Decide how the family office will be organized: holding company, trust, foundation, or hybrid.
Consider entity structure for both operations and investments—LLC, LLP, or offshore entities.
Choose the right jurisdiction: domestic vs. international (e.g., Singapore, Switzerland, Cayman Islands).
Consult with legal and tax advisors to minimize liability and maximize flexibility.

Step 5: Build the Team

Start with core roles (investment, legal, finance).
Hire for both technical expertise and cultural fit.

Step 6: Establish Governance

Set up a board or advisory committee.
Define family values, communication rules, and decision-making protocols.

Step 7: Select Technology & Infrastructure

Invest in cybersecurity, reporting tools, and secure communication systems.
Use software tailored for family office operations (e.g., Addepar, Eton Solutions).

Step 8: Launch & Iterate

Begin with a lean model and evolve.
Reassess annually to adapt to changing needs or market conditions.

Who Actually Needs a Family Office?

Here’s a basic breakdown:

Net Worth	Ideal Option
$5M–$30M	Private bank or boutique advisor
$30M–$250M	Multi-Family Office
$250M+	Single Family Office

But wealth is just one factor. Families with complex holdings (real estate, art, businesses), cross-border needs, or strong philanthropic goals may benefit even at lower thresholds.

Trends Shaping Modern Family Offices

Direct Investing: Families bypassing funds and investing in startups or real estate directly.
Next-Gen Involvement: Younger heirs want impact, innovation, and purpose.
Digital Transformation: Tech stacks and virtual models are replacing legacy systems.
Privacy & Security: Cybersecurity and discretion are paramount.
ESG & Philanthropy: Aligning wealth with values is becoming a default.

Common Myths About Family Offices

“It’s just a rich person’s investment firm.”
Wrong. It’s a full-spectrum operation, from taxes to tutoring.

“You need a billion dollars to start one.”
Not necessarily. MFOs and VFOs make it more accessible.

“It’s all about money.”
Not really. Most family offices exist to protect values, not just value.

Final Thoughts

A family office isn’t just about preserving wealth—it’s about preserving intention. It’s a vehicle for aligning money with purpose, simplifying complexity, and protecting legacies across generations. Whether you’re an advisor, a wealth builder, or an heir-to-be, understanding the role of a family office is key to long-term success.

Are you building multigenerational wealth?
If you’re starting to think about legacy, now’s the time to understand what a family office can offer. Start with your goals, not just your balance sheet. Want help mapping out your options? Reach out to a family office consultant or explore a multi-family office near you to get real clarity.