Ultra-high-net-worth (UHNW) families often face the challenges of managing complex assets, activities, businesses, and relationships. A family office is a private entity designed to simplify these complexities, increase efficiencies, and support the long-term goals of wealthy families. Beyond offering wealth management services, a family office can help foster family unity, facilitate higher returns, and preserve wealth across generations.
This article answers some common questions to help you understand the value of a family office and decide whether it’s the right option for you and your family.
What Is a Family Office?
Family offices provide holistic solutions to help affluent entrepreneurs, business leaders, philanthropists, and families protect, grow, and transfer their wealth more efficiently. The main goal of a family office is to address the complex needs of wealth creators by managing their assets and finances, overseeing investments, and providing services related to estate and tax planning, risk management, philanthropy, and more.
Family offices are not one-size-fits-all. The services, team, and scale of each entity are tailored to meet the financial and personal objectives of the clients they serve. A successful family office requires assembling professionals—such as wealth planners, investment managers, accountants, attorneys, and client service specialists—who have outstanding credentials, excellent communication skills, and the right chemistry with your family.
What are Different Types of Family Offices?
According to Citi Private Bank’s 2024 Global Family Office Survey, family office expenses typically range from one to two percent of a family’s total active assets. So, a family with $200 million in active assets might spend $2 to $4 million annually on a family office. 1 The good news is you don’t have to do it alone. Here are different types of family offices to consider:
Single-Family Office: This type of office is fully customized to exclusively manage all aspects of a single individual or family’s financial world. It tends to be a more expensive option but offers the highest level of control and personalization. Additionally, creating and managing your own family office can be expensive and daunting.
Shared Family Office: A shared office serves multiple affluent clients, pooling resources, expertise, and creativity to provide comprehensive wealth management services while reducing costs.
Fractional Family Office: Fractional offices provide an option for families who want assistance with specific financial services rather than a full management suite.
What Services Does a Family Office Provide?
One of the distinguishing factors of a family office is the bespoke nature of its services. Whether it’s growing wealth, creating a business succession plan, or ensuring the well-being of future generations, a family office can design a high-level financial strategy that aligns with your values and goals. Services typically include:
Investment Management: Overseeing and managing your investment portfolio, including public securities, alternative investments, and private deals.
Estate and Tax Planning: Developing wills, trusts, and tax-advantaged investments to protect your wealth and ensure it’s passed on efficiently.
Risk Management and Insurance: Identifying and assessing risks while implementing strategies to protect your family and assets.
Philanthropy and Family Governance: Assisting with charitable giving, community building, and preparing the next generation for success.
Lifestyle and Administrative Support: Offering concierge services such as personal budgeting, accounting, property management, and travel coordination.
The Value of a Team-Based Approach
A well-structured family office is built on a team of specialists who bring deep knowledge and experience across different financial and legal disciplines. Instead of relying on a single advisor, a multi-disciplinary team ensures comprehensive oversight of your wealth.
Choosing a family office with experienced professionals means access to specialists in investment management, estate planning, tax advisory, and business succession planning all working together under one roof. The right team chemistry is just as important as credentials, ensuring seamless collaboration and alignment with your family’s needs.
What Are the Benefits of a Family Office?
The right family office can help simplify all aspects of your financial life, offering comprehensive support while maintaining your desired level of control. Key benefits include:
- Personalized solutions to meet your specific goals
- Centralized administration and oversight of assets
- High levels of privacy and confidentiality
- Access to institutional-quality investment options
- Advanced technology and detailed reporting
- Support for generational transitions in business and life
- Continuity of your family wealth, values, and legacy
- More time to focus on what truly matters
Final Thoughts
If you’re ready to gain the support necessary to manage your wealth with discretion, efficiency, and expertise, a family office might be a good fit.
Aaron Wealth is a shared family office that helps good people ensure their wealth and values are protected for generations, orchestrate their financial world, and strive to positively impact their personal, business and philanthropic missions. Our team can act as advocates for your family, managing all the moving parts and delivering consistent long-term results.
Let’s discuss building your personal shared family office.
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DISCLAIMER
*Aaron Wealth Advisors LLC is registered as an investment adviser with the Securities and Exchange Commission (SEC). Aaron Wealth Advisors LLC only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.
*This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances or any particular investor or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors. The information contained in this presentation represents factual information, analysis, and/or opinions regarding various investments. Any opinions expressed in this material reflect Aaron Wealth’s views as of the date(s) indicated in the Presentation and are subject to change.
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