Start by deciding what the office needs to handle, then plan before a major liquidity event or while wealth is growing. Set priorities for investment oversight, administration, tax and estate coordination, and philanthropy. Choose a single-family, virtual, or other suitable model, document responsibilities, and add people and systems as needs become clear.
1. Set the timing and purpose
Begin with a clear view of what the family needs help managing. List the work that is currently spread across advisers, companies, trusts, and household arrangements. Common priorities may include investment oversight, reporting, bill payment, tax and estate planning coordination, governance, and philanthropy. Decide which of those functions need central coordination and which can stay with outside professionals.
Timing matters. Richard C. Wilson's book excerpt says a family may want to begin before a liquidity event, or when net worth is increasing fast enough that reaching a substantial level of wealth appears likely. Planning ahead can make it easier to organize structures and capital management before proceeds arrive. The excerpt also describes families that first used a holding company and later formalized their holdings and philanthropy as a family office.
2. Choose a model that fits the workload
A family office does not have to begin as a large in-house team. Compare a dedicated single-family office with a virtual or outsourced arrangement, based on the services required, privacy and control preferences, and the work the family can oversee. Start with the functions that matter most, then decide whether they require employees, outside specialists, or a mix.
The available market estimates show why the choice should be tailored: Deloitte estimated 8,030 single-family offices worldwide in 2024, with 9,030 projected for 2025. Those figures count offices, not a recommended threshold for starting one. (Deloitte Private, 2024)
3. Write a plan before hiring
Set out the office's purpose, services, decision rights, reporting, budget, and how the family will review results. Identify who can approve investments and spending, who coordinates with tax and legal advisers, and how family members receive information. Then map current providers and responsibilities to find gaps or duplicate work.
For example, a family expecting a business sale could first coordinate with legal, tax, and investment professionals to prepare for the proceeds, then decide which ongoing functions should sit with a virtual office and which justify dedicated staff. This follows the timing and formalization path described in the book excerpt; the precise structure depends on the family's circumstances.
4. Build and review in stages
Put essential records, reporting, and communication routines in place before adding more complexity. Select an accountable lead, whether an employee or an outside coordinator, and agree on how decisions and exceptions are escalated. Revisit the setup as the family's assets, businesses, and needs change. A staged approach gives the family a chance to see which work is recurring and where dedicated expertise is useful.
From Family Office Club events
"While it is ideal to start before a liquidity event to have structures set up properly to optimize taxation and management of the capital from the start, many families have started in the past by initiating a holding company and then later hearing about the family office trend and starting to formalize their holdings and philanthropy work into a family office."
Sources
- Henley & Partners, Centi-Millionaire Report 2024.
- Deloitte Private, Family Office Insights Series Global Edition 2024.
- Family Office Club event transcript
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