Starting or creating a family office
How Can a Family Avoid Duplicating Services Already Provided by Its Advisers?
Short answer. Inventory what each adviser already does, including scope, deliverables, fees, and the responsible contact. Then define what the family office will own and what stays with each adviser. Identify where coordination is needed. Review the boundaries before adding a provider or service, and revisit them when the family's needs change.
Map adviser responsibilities before the family office takes on work or hires another provider. Duplication can arise when families do not know what advisers already handle, who owns each task, or where one service ends and another begins.
Make an Inventory of Current Services
For each adviser, list the service provided and the family member or entity served. Include the relevant agreement, fees, reporting, and internal contact. Describe the actual work, not the adviser's title. Ask for current engagement terms and a clear description of recurring deliverables.
Check for overlap across accounting, investment reporting, and tax coordination. Include legal work, technology, and administration in the review. A task may appear in multiple proposals under different names. Confirm whether advisers prepare the work, review it, or provide information to someone else.
Assign Ownership and Define Handoffs
For each recurring task, name the person or provider accountable for completing it, along with anyone who reviews it or supplies information. Document when information moves between the adviser and family office, and who follows up if it is missing. One internal relationship owner can coordinate routine communication and keep instructions consistent.
Clarify the division of work before bringing in another adviser. For example, the office may gather records and coordinate deadlines while an outside professional handles specialized analysis. Specify which work the adviser will complete and what the office will provide. Talk with your attorney or CPA when the division affects legal or tax responsibilities.
Keep approval authority separate from task ownership. An employee may coordinate recommendations without authority to make an investment, legal, or family decision. State who approves scope changes, additional fees, and material decisions so advisers do not receive competing instructions.
Check for Overlap Before Expanding
Before engaging a provider, compare the proposed scope with the inventory. Ask what gap the new service fills, what the existing adviser will continue to do, and how the two parties will share information. Consider whether changing an existing engagement would meet the need with less coordination.
Review the arrangement periodically and when family needs change. Check whether tasks are repeated or reports conflict. See whether a provider is doing work that is no longer needed. Keep a record of scope changes and tell affected advisers when responsibilities shift.
The partners and service providers guide can help with engagement boundaries. The operational processes guide can help document handoffs. See also how to evaluate a provider and who should own adviser relationships. A clear inventory gives the family a shared picture of what it pays for and who is responsible for each piece of work.
While writing up your governance documentation, you will need to decide how you will balance these issues and how strict you will be with the hiring of advisors for critical functions, such as accounting and reporting, software solutions, investment consulting, legal advice, etc.
Sources: How to Start a Family Office, The Single Family Office. Informational only, not financial, legal or tax advice.