Starting or creating a family office
How Can a Family Decide Which Generations and Branches the Office Will Serve?
Short answer. Map the family branches and generations, then agree on who the office serves, which services each group can use, and how decisions and costs will be handled. Write those choices down before hiring staff or transferring responsibilities so expectations are clear and the office can plan its capacity.
Decide whom the office serves by mapping the family and agreeing on its purpose before assigning services or authority. A family tree helps everyone see the generations, branches, and households affected by the decision. From there, document who is eligible for support, what the office will do for them, and how decisions will be made.
Start With a Shared Map
Draw a current family tree that identifies the wealth creator and the generations and branches involved. Include the households the family expects the office to serve, while keeping the map focused on relationships and responsibilities. The exercise can expose differences in how relatives understand the family's size and who belongs within the office's scope.
Then discuss the purpose of the office. Is it meant to coordinate the wealth creator's affairs, support a broader family, or prepare for future generations? Those purposes can lead to different staffing, reporting, and governance needs. I recommend capturing the family's objectives and values in a family compass so advisers and employees have a shared reference. The family compass guide explains how to make that document useful.
Define Service and Participation
Being included in the family does not automatically mean receiving every service. Specify which responsibilities the office will handle, such as consolidated reporting, coordination with advisers, or household administration. For each service, identify the eligible people or entities, the person who can request it, and any limits. Some functions may serve the whole family, while others may remain specific to the wealth creator or an individual household.
Set expectations for participation as well. Decide who receives reports, who can raise priorities, and which decisions require family input. Clarify whether relatives are being consulted, voting, or simply informed. If a branch will receive support but not take part in a particular decision, state that plainly. This helps reduce surprises and makes it easier for staff to respond consistently.
Assign Authority and Review the Arrangement
Write down how decisions are approved, who resolves disagreements, and who can change the scope. Establish a process for requests that fall outside the agreed services. A family office leader can coordinate work across advisers, but the family needs to define the leader's authority and the matters reserved for family members. Governance documents can record these arrangements; the governance guide covers the related structures.
Consider the practical cost and workload of serving additional branches. More households can mean more coordination, records, communication, and differing preferences. Use a family office cost calculator to explore operating costs, and revisit the scope if the office cannot support the agreed services reliably.
Review the arrangement when family circumstances or needs change. A clear written policy gives the office a basis for consistent service and gives relatives a fair chance to understand how they fit. If the plan involves legal entities, ownership rights, or tax treatment, talk with your attorney and CPA before putting it into effect.
It is helpful to start the process by drawing out the family tree.
Sources: How to Start a Family Office, The Single Family Office. Informational only, not financial, legal or tax advice.