Family Office

A family office is a private company that manages investments and trusts for a single wealthy family. The company's financial capital is the family's own wealth, often accumulated over many family generations. Traditional family offices provide personal services such as managing household staff and making travel arrangements. Other services typically handled by the traditional family office include property management, day-to-day accounting and payroll activities, and management of legal affairs.

Family offices often provide family management services, which includes family governance, financial and investment education, philanthropy coordination, and succession planning.

Modern family offices

Modern family offices are typically separated into three classes.

CLASS A FAMILY OFFICES provide estate and financial services and typically are operated by an independent company that receives direct oversight from a family trustee or administrator.

• Offers comprehensive financial oversight of all liquid financial assets.
• Offers daily management of all illiquid assets, such as real estate.
• Can administer and manage the entire estate with little to no supervision.
• Charges a flat monthly fee for all family office services.
• Offers advice free from conflicts of interest and will not sell products.
• Offers a comprehensive monthly report of all estate activity for no additional fee.

CLASS B FAMILY OFFICES focus on providing financial services and are typically operated by a bank, law firm, or accountant firm.

• Offers investment advice for a fee.
• Can offer products and services outside the scope of a family office.
• Does not directly manage or administer illiquid assets in the estate.

CLASS C FAMILY OFFICES focus on providing estate services and are typically operated by the family with the assistance of a small support staff.

• Has a staff that will monitor the estate and report into the family trustee with any irregularities.
• Provides basic administrative functions, such as bookkeeping and mail sorting.
• May have an office inside a family member's home.

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