Family Office Structure

A single family office serves one family and offers full control, privacy and bespoke service, but at a higher cost carried by that one family. A multi-family office serves several unrelated families and shares its costs and infrastructure across them, making sophisticated services more affordable. The trade-off is less control and customisation in exchange for economies of scale and greater cost efficiency.

Start with your family's size, assets under management, geographic footprint, values and long-term goals. Families with roughly US$100 million or more often justify a single family office, while those with less may prefer a multi-family or virtual structure. Consider the services you need now and in five years, how many family members are involved and the regulatory environment you are comfortable in. Many families work with an advisory firm to evaluate their options.

Best-in-class family offices rarely use a single entity. They typically layer three tiers: a management company (often an LLC or C-corporation) that employs staff and runs operations, investment holding entities such as limited partnerships or series LLCs that hold and grow capital, and asset protection vehicles such as private trust companies and family holding companies. This separation limits liability, improves tax treatment and simplifies succession.

There are five main models. A trust structure holds assets in a fiduciary vehicle for succession and protection. An embedded family office runs informally within the family business. A single family office is a dedicated standalone entity serving one family, while a multi-family office serves several unrelated families. A virtual family office coordinates mostly outsourced services through a small core team. Each differs in cost, control, services and scalability.

A family office structure is the organisational, legal and governance framework a wealthy family uses to manage its wealth and affairs. It covers the operating model (such as a single family office, multi-family office or virtual family office), the legal entities that hold and protect assets, and the governance that guides decisions. The right structure balances cost, control, privacy and the services the family needs now and in the future.