Family Offices: What They Are, How They Work, and Types What is a family office? A family office is a private, full-service wealth management organization created to serve ultra-high-net-worth individuals (UHNWIs) and their families. It provides a centralized team that handles financial, legal, tax, estate, and lifestyle needs tailored to the family's goals and values. How family offices operate Family offices deliver highly personalized services through an integrated team of specialists—investment managers, tax and estate advisors, legal counsel, accountants, and lifestyle professionals. Services are coordinated to preserve and grow wealth across generations and to support family governance and philanthropic objectives. Explore More Resources
Core services
Investment and portfolio management (public markets, private equity, real estate, alternatives)
Tax planning and compliance
Estate and legacy planning (trusts, succession plans)
Risk and insurance management
Philanthropic advising and foundation management
Family governance and wealth education for younger generations
Concierge and lifestyle services (security, travel, household staff, aircraft/yacht management) Key responsibilities Family offices take a holistic approach that often includes:
Legacy planning: Designing wealth-transfer strategies that address taxes, legal constraints, business succession, family trusts, and philanthropy.
Investment oversight: Constructing and monitoring diversified portfolios, sourcing private deals, and managing real estate and alternative investments.
Lifestyle and operational management: Coordinating personal staff, security, travel, and property operations.
* Family education and governance: Teaching heirs about stewardship, aligning family values with financial decisions, and establishing governance structures to reduce conflict. Explore More Resources
Types of family offices
* Single-Family Office (SFO): Dedicated solely to one family's affairs. Offers maximum control and customization but is costly to maintain.
* Multi-Family Office (MFO): Serves several families, providing similar services at shared cost. Offers economies of scale but less direct control for each family.
* Outsourced Family Office: A coordinated network of external professionals (advisors, lawyers, accountants) led by a principal coordinator. Lower cost and more flexibility, with less centralized governance.
Who typically uses a family office? Family offices are designed for UHNWIs whose wealth and related needs are complex. They are especially useful for families with significant business interests, large philanthropic commitments, extensive cross-border assets, or multi-generational succession issues. A commonly cited threshold for considering a dedicated (single-family) office is very high—often cited in the hundreds of millions—while multi-family or outsourced arrangements can suit families with lower but still substantial wealth. Family office vs. wealth advisory firm
* Scope: Wealth advisory firms focus mainly on investment and financial planning for many clients. Family offices provide a broader, bespoke suite of financial and non-financial services.
* Client focus: Family offices are tailored to one family (or a small group), enabling deeper customization and confidentiality.
* Control and alignment: Single-family offices offer direct control and alignment with family objectives; firms and MFOs balance multiple client priorities.
Historical note The concept of a dedicated family office dates back to the 19th century—John D. Rockefeller established one of the earliest full-service single-family offices in the U.S. Explore More Resources
When to consider a family office Consider a family office if you need:
Deep, ongoing coordination of tax, legal, investment, estate, and lifestyle matters
Dedicated oversight of business succession or complex private assets
* Professionalized governance and intergenerational wealth education
For many affluent families, a wealth advisory firm or outsourced model delivers sufficient service at lower cost; a full single-family office typically suits only the most complex and sizable estates. Bottom line Family offices provide comprehensive, customizable support for ultra-wealthy families, integrating financial management with lifestyle and legacy services. The right structure—single-family, multi-family, or outsourced—depends on the scale of wealth, desired control, complexity of needs, and cost considerations. Explore More Resources