Starting or creating a family office
Should the Office Serve Only the Wealth Creator or the Whole Family?
Short answer. Choose the scope that fits the family's purpose, capacity, and willingness to share decision-making. An office can focus on the wealth creator, serve defined branches, or support the whole family. Put eligibility, services, authority, and cost allocation in writing so relatives know what to expect.
The office should serve the people and responsibilities the family has explicitly chosen and can support. Some offices focus on the wealth creator, while others serve several generations or branches. Neither scope works by default. Agree on the purpose, services, authority, and costs before the office begins taking requests from relatives.
Start With the Reason for the Office
Discuss why the family wants an office and what outcomes matter. The wealth creator may want more coordination and control over personal affairs. Other relatives may need consistent reporting, education, or help coordinating with advisers. These needs can coexist, but they should not be left implicit. Ask which responsibilities belong at the family level and which stay with an individual or household.
Write down the office's purpose and scope in a family compass or operating document. Include who may receive support and what the office is expected to handle. The family compass guide offers a starting point for recording shared objectives and values.
Choose Who Receives Which Services
A decision to serve the whole family does not require every relative to receive the same services. The office might coordinate investment reporting for several branches while handling personal administration only for the wealth creator. Define eligible people, covered tasks, and any limits. Explain how relatives request help and what happens when a request falls outside the approved scope.
Be clear about participation and authority. A relative may receive information without holding approval power over an investment or operating decision. Another family member may have a formal role in governance. Document who is consulted, who decides, and how disagreements are addressed. The single family office governance guide discusses how to establish clear roles and oversight.
Match Scope to Capacity
Serving more people can increase staff workload, communication needs, and operating expense. Estimate what the office can handle with its planned team and service providers. A family office cost calculator can help organize the cost discussion. If a full office is not warranted, compare it with a shared external service model using the single vs multi-family office break-even calculator.
Set a review process so the family can change the scope when circumstances shift. Track whether the office is meeting its stated responsibilities, whether relatives understand the boundaries, and whether the structure is sustainable. Do not promise broad family support if the team lacks the capacity or authority to deliver it. For legal ownership, employment, or tax questions, talk with your attorney or CPA before implementing the plan.
Single family offices have the ability to best serve ultra-wealthy families in the most focused, holistic, and aligned way possible.
Sources: How to Start a Family Office, The Single Family Office. Informational only, not financial, legal or tax advice.