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What is a family office, in plain English?
How much money do you need to have a family office?
What's the difference between a family office and a wealth manager?
What is a virtual or fractional family office?
My parents had a family office. Do we keep it now that they're gone?
Who coordinates everything for a family with inherited wealth?
Written by Amy Parvaneh, founder and CEO of Select Advisors Institute
Excerpt and Summary:
If your family has inherited significant wealth, you've probably heard someone say "you should really have a family office." But what is a family office, what does it actually do, and is it right for you? Many families don't need a full staff. They need the coordination a family office provides, in a lighter, more affordable form. Here's how to tell the difference, and how Select Advisors Institute can help you figure out what fits.
Everyone keeps saying "family office." What is it?
Is it a building? A company? A person? Do I need to hire a butler?
No butler required. (Unless you want one.)
A family office is simply a team that manages the whole financial life of a wealthy family. Not just the investments. Everything.
Think of it as the family's private back office. Typical family office services include:
Overseeing the investments and the advisors who manage them
Paying bills and tracking spending across homes, staff and accounts
Coordinating taxes with the CPA and estate plans with the attorneys
Managing trusts, insurance, real estate, art, planes and boats
Organizing family meetings and preparing the next generation
Keeping every document in one place, so nobody has to dig through a filing cabinet
A wealth manager looks after your portfolio. A family office looks after your family's money life.
How is a family office different from wealth management?
This is the question I hear the most from heirs.
You might have just inherited from your parents and realize their "advisor" was really a whole team.
You might be a widow who just learned your husband quietly ran a mini family office out of his study.
You might be one of four siblings who now share a trust, a vacation home and very different opinions.
A wealth manager usually focuses on investing and planning. A family office sits one level above, coordinating the wealth manager, the CPA, the attorneys, the insurance broker and the household staff.
I saw both sides during my years at Goldman Sachs Private Wealth Management and PIMCO. Some of the most organized families had a strong family office in the middle, quietly making sure every professional was doing their part.
[read: Family Office vs Wealth Management Guide]
Single family office vs multi family office: what's the difference?
There are two classic versions:
Single family office: a private company built to serve one family. It has its own staff, its own systems and its own (often very large) budget.
Multi family office: a firm that serves many families at once, sharing staff and costs.
A single family office can cost millions of dollars a year to run. That's why you usually hear about them for families with very large fortunes.
A multi family office can make sense at lower levels, but services, fees and attention vary a lot from firm to firm.
Before you sign with any multi family office, ask a few simple questions:
"How many families does each person here look after?"
"Which family office services are included, and which cost extra?"
"Do you earn anything from the investments or providers you recommend?"
"Who would be my main contact, and can I meet them now?"
Bottom line: the label matters less than the question underneath it...who is actually making sure everything gets done?
Do we need one...or a lighter version?
We have a lot of money, but not "build a private company" money. Now what?
This is where most inheriting families land. And there's good news.
You can get the benefits of family office services without hiring a full staff. Families use several lighter versions:
Virtual family office: a coordinated group of outside professionals who work together on your behalf, with one point person.
Fractional family office: family office style support, part time, for a fraction of the cost.
Outsourced family office: you hand the back office work (bill pay, reporting, document management) to an outside firm.
Personal CFO: one experienced person who oversees your whole financial picture and keeps every advisor on track.
Many families don't need a family office. They need someone who acts like one.
Picture a widow with two adult children, a family trust, a home in California and a cabin in Montana. Her late husband kept everything in his head. She doesn't need ten employees. She needs one organized person who knows every account, every deadline and every phone number, and who keeps the advisors, the CPA and the attorney working from the same page.
That's a family office in spirit...without the overhead.
[read: What Is a Fractional Family Office?]
How do I know which one fits my family?
Start with a few honest questions:
How many advisors, accounts, trusts and properties do we have today?
Who is coordinating all of it right now? (If the answer was "Dad," that's important.)
Do we spend more time chasing paperwork than making decisions?
How many family members are involved, and do they agree on much?
Do we want to be hands on, or do we want someone to handle it all?
If you have one advisor, one trust and a house, you probably don't need a family office. A good wealth manager and a reliable bill pay service may be plenty.
If you have multiple homes, multiple trusts, siblings with different needs and a handful of advisors who never speak to each other...it's time to think about some form of coordination.
[read: Do You Need a Family Office, or Just Someone Who Makes Sure Everything Gets Done?]
What about the family side of a family office?
This is the part people forget, and often the most valuable.
When wealth passes to a new generation, the hardest conversations aren't about money. They're about people. Who decides? Who gets a say? What happens when one sibling wants to sell the lake house and another wants to keep it forever?
Good family offices help with family governance: regular family meetings, clear decision rules, and a plan for teaching the kids (and grandkids) what's coming.
A first family meeting doesn't have to be fancy. It can be as simple as:
Sharing, at a high level, what the family owns and who is helping manage it
Agreeing on how decisions about shared assets will be made
Deciding how (and how often) everyone will stay informed
You don't need a full family office to do this. But you do need someone to start the conversation.
[read: A Family Governance Framework for a Lasting Legacy]
The list of questions goes on and on!
And that's exactly where Select Advisors can come in and help!
Don't go through the process of finding or changing a financial advisor alone. We can help!
How can Select Advisors Institute help me decide if my family needs a family office?
At Select Advisors Institute, we do not manage investments or provide financial advice. Instead, we offer strategic support to help you navigate the complexities of wealth management, ensuring that your financial relationships are structured to serve your best interests. By providing these services, we help you maintain control over your financial decisions, ensuring that your wealth management strategy aligns with your unique needs and objectives.
Hi, I'm Amy Parvaneh
We'd love to speak with you about your goals, answer some of your top questions about the financial industry, and/or refer you to some of my favorite financial advisors in this space that may match your exact needs.
If your family has inherited significant wealth, you face unique challenges. There may be several trusts, properties and advisors, family members with different needs, and nobody clearly in charge of coordinating it all. Understanding whether you need a full family office, a lighter version or simply better coordination can save your family a lot of money and stress.
We provide comprehensive support by assisting in the organization and management of your financial advisor evaluation process. Our services include helping you define your financial needs and priorities before engaging professionals, drafting or reviewing RFPs for advisory and planning services, and building comparison frameworks across firms, services, and compensation models. We also track communications during advisor meetings to identify gaps or follow-ups, ensuring that you have all the necessary information to make informed decisions.
Since 2014, my firm has guided 100s of financial firms and thousands of financial advisors. I have been in the financial services industry since 2001, with a successful career at Goldman Sachs Private Wealth Management and then PIMCO.
Beyond advisor selection, we assist in gathering background materials and documentation for review, help interpret fee structures and service models, and coordinate introductions to firms that meet your specific criteria. Our team reviews public disclosures, monitors advisor changes or staff turnover that may impact your relationship, and facilitates communication with your legal, tax, and family office teams. We aim to translate industry jargon into terms that align with your values, providing debrief support after advisor interviews and designing internal decision-making frameworks across stakeholders. By serving as a neutral, long-term liaison, we help monitor alignment, organize your existing team for better visibility and clarity, and support onboarding logistics for newly selected firms. Our goal is to ensure that the advisor you choose fits your actual life, not just their presentation.
https://www.linkedin.com/in/amyparvaneh/
If you have any of the below questions, it's time to call us!
What is a family office, and do we need one?
How much wealth does a family need for a family office?
What family office services should we expect?
What is the difference between a single family office and a multi family office?
What is a virtual family office?
What is a fractional family office, and what does it cost?
Should we outsource our family office?
Do we need a family office or just a good wealth manager?
Do I need a personal CFO instead of a family office?
Who coordinates our advisors, CPA and attorneys?
My parents had a family office. Should we keep it?
How do we compare multi family offices?
How do we write an RFP for family office services?
How do we set up family meetings and family governance?
How do we prepare the next generation for inherited wealth?
How do siblings share decisions about a family trust or vacation home?
What questions should we ask a family office before hiring?
How are family offices paid, and are there conflicts?
Who keeps all our family documents organized in one place?
Can someone help us figure out what kind of support we actually need?
Select Advisors Institute is not a registered investment adviser and does not provide investment, legal, or tax advice. We are a boutique management consulting firm deeply embedded in the wealth management, asset management, family office, and UHNW sectors, advising financial institutions on strategic growth, talent development, investor communication, and brand positioning, while guiding ultra-high-net-worth families in advisor selection, coordination, and the day-to-day management of complex wealth structures.
Managing the wealth of ultra high net worth investors and family offices is a highly specialized and nuanced endeavor that requires the expertise of seasoned financial advisors. The best financial advisors for UHNW clients possess specialized knowledge, a fiduciary mindset, a customized approach, a robust network, a proven track record, expertise in philanthropic planning, and a sterling reputation. By carefully considering these factors, UHNW individuals and family offices can select financial advisors who are best suited to meet their unique and intricate financial management needs.