ContactLegalLogin

Long before the term ‘family office’ entered the financial lexicon, wealthy families entrusted the running of their estates to a trusted figure: the major domo. From Roman households to Renaissance dynasties, these early stewards managed everything from landholdings to household staff, family ceremonies to financial affairs.

Today’s family office is the 21st-century successor to the major domo – a bespoke solution for managing the intricate lives, assets, and legacies of UHNW families. At their core, family offices are wealth management structures with a dedicated team for handling topics like succession, philanthropy, and investments. While the complexity has grown exponentially compared to centuries ago, the spirit of family offices remains the same. 

Yet, despite its ancient lineage, the family office remains curiously misunderstood – and for many families, this lack of clarity may be the very thing standing between them and a future-proof legacy. 

What makes a family office worth it?

When thoughtfully structured, a family office becomes far more than a back-office operation. It becomes the glue that holds together a family’s values, wealth, and ambitions – managing everything from investments and philanthropy to digital security and succession, and guiding the family confidently into the future.

Why is this important? Because the stakes are incredibly high.

Sensitive data, multijurisdictional exposure, and intergenerational complexity require not just discretion, but digital sophistication. The modern family office must be as much about encrypted communication and AI-powered analytics as it is about trusts and governance structures. Done right, it empowers families to make better, faster decisions – with integration and insight across their entire financial universe. It creates continuity. It preserves intent. It manages risk. And most importantly, it lets families live their lives without being consumed by their assets.

What stops UHNWIs from establishing a family office?

Despite these compelling benefits, many UHNW families still haven’t taken the step to establish a family office. According to this year’s Family Barometer, 41 per cent of respondents cited cost as the leading barrier to setting up a single-family office. This was followed by concerns around management complexity (29 per cent) and a belief that their wealth simply wasn’t substantial enough (28 per cent).

These concerns are understandable, but they’re also largely surmountable. The idea that one must have billions to justify a family office is rooted in outdated thinking. Similarly, the belief that such structures are overly complex or only relevant to dynastic wealth overlooks just how adaptable the modern family office model has become. Often, the real issue isn’t feasibility, it’s not knowing where to begin.

Making the right decisions from the start

Many families who are planning to sell their businesses or benefit from substantial liquidity ask themselves: do I now need my own family office?

According to María Eugenia Mosquera, Head of Wealth Planning Key Clients & Family Office Services at Julius Baer, there is no straightforward answer: “It largely depends on the family’s specific circumstances, including the level of wealth, structural complexity, and the individual needs of its members,” says María. “Thorough assessment and analysis are essential, as is maintaining objectivity to avoid favouring solutions that may not be fully aligned with the specific circumstances.”

That’s where the right guidance can make all the difference. A seasoned wealth manager helps families cut through the myths and approach the process not as an overwhelming commitment, but as a phased, thoughtful evolution.

Balancing in-house capabilities with strategic outsourcing

Once a family decides to establish a family office, the next key step is determining which services to manage internally and which to outsource. “This depends on the family’s priorities, the complexity of their wealth, and how much operational infrastructure they want to oversee,” explains María. “Some families prefer to keep control of areas like philanthropy or governance, while others prioritise access to specialised expertise via external partners. In reality, most family offices adopt a hybrid model, combining internal oversight with outsourced services such as legal, wealth planning, or investment advisory.”

Investment management is many times an outsourced function – and with good reason. External advisors and wealth managers bring deep expertise across asset classes, global markets, and alternatives. Replicating this in-house can be costly and difficult, especially for complex portfolios. Regulatory factors also matter. In many jurisdictions, offering formal investment advice internally may trigger licensing or compliance obligations. Outsourcing shifts this burden to qualified professionals and ensures legal alignment.

Designing the right approach for your family

A family office delivers the greatest value when grounded in a disciplined, professional framework. “A thoughtfully designed family office often becomes the cornerstone for long-term wealth preservation and successful intergenerational transfer.” says Thomas Frauenlob, member of the Global Wealth Management Committee and Co-Head Region Western Markets & Switzerland at Julius Baer. 

This kind of framework typically includes a robust wealth structure, disciplined governance, clear investment principles, formal communication channels, early heir preparation, and a shared family vision. “When anchored in these elements,” María adds, “it offers far greater value than generic, one-size-fits-all solutions.”

Professionalisation doesn’t begin with picking a structure but with the family itself: its values, objectives, internal dynamics, long-term ambitions, and understanding of its own wealth composition. Some families prioritise governance, aiming to build a lasting institutional framework for future generations. Others focus first on financial efficiency, applying professional discipline to investment oversight and liquidity management.

“There’s no universal blueprint,” says María. “Instead, the right approach is thoughtfully curated to reflect each family’s unique needs, preferences, and aspirations.”

Why family office location matters more than you think

One of the most strategic, and sometimes difficult decisions is where to base the family office. Location influences everything from stability and regulatory clarity to access to talent, privacy, and lifestyle.

Switzerland continues to hold appeal for families seeking stability and a long-standing tradition of private wealth services. Singapore and Hong Kong, with their robust legal systems and gateway to Asia-Pacific markets, are a natural choice for families with regional ties or pan-Asian investments. Dubai has emerged as a modern hub for globally mobile families, offering attractive residency options and a dynamic ecosystem for private capital.

But choosing a jurisdiction also involves practicalities: where are key family members based? Where and how is the wealth held? Which legal systems best support the family’s governance structures and future goals? In some cases, the ‘centre of gravity’ may not be geographic at all, but digital – with a virtual family office coordinating talent, data, and strategy across continents.

Securing your family office for the digital age

Technology and cybersecurity, too, are no longer optional considerations. Today’s family office must be equipped to manage sensitive information with institutional-grade security, integrate real-time reporting and decision-making tools, and support multi-generational communication with ease. The infrastructure – whether cloud-based or physical – must support the family’s pace and preferences, without compromising confidentiality.

Ultimately, creating a family office is less about assembling a fixed entity and more about building a living, evolving platform – one that brings coherence to the family’s wealth and vision to its legacy.

What does this mean for you?

It may be practical for you to take stock of your family’s existing frameworks, when deciding if you need a family office. For example:

  • Assess your current situation: Are you relying on informal arrangements that may struggle under growing demands? Is your wealth spread across borders or asset types? Are succession plans clearly defined, or still aspirational?
  • Clarify what matters beyond finances: Values, education, stewardship, and purpose are central to enduring legacies. Ensure you are supporting these dimensions just as rigorously as investment performance.
  • Seek objective guidance: Partnering with experienced advisors allows you to explore options without bias or unnecessary overhead. 

In today’s world – defined by volatility, complexity, and rapid change – either a family office or a more professional approach towards wealth can offer something rare: clarity, continuity, and confidence. It is not a luxury. For many families, it is a powerful way to preserve not only their capital, but also their culture, values, and influence.

And far from being a relic of the past, the family office – born of the major domo – or taking a more structured approach towards family wealth are proving to be the most future-ready tools and approaches in the UHNW family’s arsenal. Those who invest the time to understand this are not just protecting their legacy, they’re preparing their family to thrive in a world that demands nothing less.

Contact us