Setting up a family office is a big decision, but it can be a great way to manage your family’s wealth and preserve your legacy. Follow this step-by-step guide to set up a family office!

Here’s how to set up a family office.

Step 1: Assess Your Needs and Goals

First, decide what you want your family office to do:

• What services do you need (investment management, tax planning, estate planning, philanthropy, concierge)?
• What are your long-term goals (wealth preservation, legacy, family governance)?
• What is your budget?

Step 2: Choose the Type of Family Office

Decide which type is right for you:

• Single Family Office (SFO): For $100M+ net worth, maximum customization
• Multi-Family Office (MFO): For $10M+ net worth, lower cost
• Virtual Family Office: Flexible, uses third-party providers

Step 3: Define the Family Office Structure

Decide the legal structure (e.g., LLC, corporation) and governance structure (family council, board of directors).

Step 4: Hire Key Staff

For an SFO, you’ll need to hire:

• Chief Investment Officer (CIO)
• Chief Financial Officer (CFO)/Controller
• Estate Planning Attorney
• Tax Advisor
• Philanthropy Advisor
• Concierge/Administrative Staff

For an MFO or virtual, you’ll work with existing teams.

Step 5: Establish Processes and Systems

Set up processes for:

• Investment management
• Cash flow management
• Bill payment
• Tax compliance
• Reporting
• Family communication

Step 6: Fund the Family Office

Transfer assets to the family office and set up a budget for operating expenses.

Step	Key Action
1. Assess Needs/Gapls	Define services, goals, budget
2. Choose Type	SFO, MFO, or virtual
3. Define Structure	Legal, governance
4. Hire Staff	CIO, CFO, etc.
5. Set Up Processes	Investment, cash flow, etc.
6. Fund It	Transfer assets, budget

Step 7: Review and Adjust Regularly

Review your family office regularly (annually) to ensure it’s meeting your family’s needs and goals.

Common Mistakes to Avoid

• Not involving family members in the process
• Hiring the wrong people
• Not having clear governance
• Not reviewing and adjusting regularly

Frequently Asked Questions

How long does it take to set up a family office?

6-18 months, depending on complexity.

Do I need an attorney to set up a family office?

Yes! Work with an experienced attorney who specializes in family offices.

Can I convert to a different type of family office later?

Yes! Start with MFO/virtual and switch to SFO later if needed.

Final Thoughts

Setting up a family office takes time and effort, but it’s worth it for wealthy families who want customized, holistic wealth management!