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.

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
  • 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.
  • 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.

  • 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.

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 generational 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.