Family office
A family office is an organizational platform through which a family coordinates investment, ownership, governance, administration and intergenerational continuity across complex financial and personal affairs.
Definition
A family office is a dedicated or shared organization that manages and coordinates investments, structures, reporting, administration, governance and selected personal services for a wealthy family or group of families.
Operating models
| Model | Characteristics | Trade-off |
|---|---|---|
| Single-family office | Dedicated organization for one family | Control and customization versus cost and key-person risk |
| Multi-family office | Shared platform serving several families | Scale and breadth versus exclusivity |
| Virtual family office | Coordinated network of external providers | Flexibility versus integration challenges |
| Embedded office | Functions housed within family business or investment company | Efficiency versus blurred governance and cost allocation |
Service domains
Investment
- Asset allocation
- Manager oversight
- Direct investments
- Risk and reporting
Structuring and continuity
- Tax and legal coordination
- Trusts and fiduciaries
- Succession and estate planning
- Philanthropy
Operations
- Accounting and administration
- Property and lifestyle assets
- Security and privacy
- Family education and governance
Governance
A family office needs a clear client definition, decision rights, investment authority, conflict policy, information access and succession plan. Family governance and office governance are related but distinct: the family decides objectives and representation, while the office requires professional management and control.
Design and selection
- Complexity: map assets, entities, jurisdictions, family branches and service needs.
- Objectives: define investment, control, privacy, continuity and family priorities.
- Build-versus-buy: decide which capabilities require internal ownership.
- Provider governance: assess fiduciary status, custody, conflicts, fees and continuity.
- Control: establish reporting, cybersecurity, authority and independent review.
Related concepts
Sources and further reading
View sources and editorial notes
- Society of Trust and Estate Practitioners, professional resources.
- Applicable family-office, investment-adviser and fiduciary regulation.
- OECD, tax transparency and corporate-governance publications.
Editorial note: “Family office” can describe different legal and operating arrangements. Regulatory treatment depends on activities and jurisdiction.