Starting or creating a family office
How Should a Family Office Coordinate With Trusts and Other Family Entities?
Short answer. Give the office a clear coordination role, keep each entity's authority and records distinct, and set who may share information or approve work. Track services and costs across entities with an agreed method. Ask your attorney and CPA to confirm how the structure and records should work for your family.
A family office can coordinate trusts and related entities with clear responsibilities, records, and authority. It can organize information and work with professional advisers. Each entity's governing documents and authorized people define the office's role.
Map Entities and Authority
List the family's trusts and companies, along with foundations and any other entities. For each, note its purpose, who makes decisions, key advisers, and recurring obligations. Specify whether the office handles administration, reporting, project coordination, or another defined service. Do not assume a family member or office employee has authority across every entity.
Coordinate with the trustees, directors, or other people responsible for each entity. Define what information the office may collect, who may receive it, and how approvals are recorded. Ask your attorney and CPA about legal and tax specifics, including how entity duties relate to the office's role.
Keep Records and Costs Clear
Keep separate records for each entity, such as contracts and statements, plus invoices, decisions, and correspondence. Use consistent names and access rules so staff can find documents without mixing one entity's information with another's. Set a secure process for sending records to advisers and tracking what was provided.
If office staff work across several entities, decide how to record and allocate their time and expenses. One family office executive described allocating costs among entities based on timesheets. Agree on the method in advance, apply it consistently, and review it with professional advisers. The operational processes guide can help define repeatable procedures. The partners and service providers guide can help clarify adviser roles.
Coordinate Reporting and Deadlines
Create a shared calendar for reports and filings, along with renewals and other recurring tasks. Assign responsibility to the appropriate entity and professional. The office can gather information and track deadlines while keeping coordination separate from authority to act. Set an escalation path for missing records, conflicting instructions, or work that requires a specialist.
Agree on a reporting format that helps authorized family members understand the overall picture while preserving each entity's separate records. Confirm who reviews reports and how corrections are handled. The family office reporting guide can help shape that process.
Review the Arrangement as Entities Change
Update the entity map and responsibility list when a trust, company, or family structure changes. Review access rights and service allocations at the same time. Clear coordination helps the office support the family's organization and respect each entity's separate duties and records.
Read next: What safeguards help prevent family assets from being confused with office assets?
Sources: The Family Office Book, The Single Family Office. Informational only, not financial, legal or tax advice.