What is a family office? Single, multi-family, and virtual family offices explained
Short answer: A family office is a private organization that manages a wealthy family’s financial life in one place: investments, tax and estate coordination, bill pay and accounting, insurance, philanthropy, and often family governance. A single family office serves one family and is owned by it. A multi-family office serves several unrelated families and shares its staff and costs across them. A virtual family office coordinates outside specialists instead of employing them.
What does a family office do?
- Investment oversight: asset allocation, manager selection, and consolidated reporting across accounts and entities.
- Tax and estate coordination: working with CPAs and attorneys on tax planning, trusts, gifting, and succession.
- Accounting and bill pay: household and entity bookkeeping, payroll for household staff, and cash management.
- Risk and insurance: reviewing property, liability, and life coverage.
- Philanthropy: foundations, donor-advised funds, and grant administration.
- Family governance and education: family meetings, preparing the next generation, and decision-making policies.
- Lifestyle services: in some offices, travel, property, and concierge management.
Get matched with a financial advisor
Tell us what you need. We match you with advisors and firms offering family office and wealth services that fit.
What is the difference between a single and a multi-family office?
| Single family office | Multi-family office | Virtual family office | |
|---|---|---|---|
| Who it serves | One family | Several unrelated families | One family, through outside firms |
| Staff | Employed by the family | Shared across client families | Coordinated specialists (advisor, CPA, attorney) |
| Control | Highest | Shared; follows the firm’s processes | Depends on the coordinator |
| Cost structure | Family pays all overhead | Fees shared across families | Pay each specialist |
How is a family office regulated?
Under the SEC’s family office rule, a single family office that meets the rule’s conditions is excluded from the definition of an investment adviser, so it generally does not register with the SEC. Multi-family offices that give investment advice to unrelated families generally register as investment advisers with the SEC or their state. You can look up a multi-family office’s registration, Form ADV, and disclosures on Investment Adviser Public Disclosure.
What is the minimum net worth for a family office?
There is no legal minimum. Whether a family office makes sense depends on how complex your finances are and whether the cost of a dedicated team is justified, compared with paying a multi-family office or coordinating separate advisors. Multi-family offices and wealth managers set their own client minimums, which they disclose in their Form ADV brochures. Ask each firm directly.
What is a virtual family office?
A virtual family office gives a family many family office services without hiring staff. A lead advisor, often a wealth manager or CPA, coordinates outside specialists such as estate attorneys, insurance advisors, and bill-pay services, and gives the family one point of contact and consolidated reporting.
How do families choose a family office model?
- How many entities, trusts, properties, and generations need coordination?
- How much control and privacy does the family want?
- Does the family want to employ staff, or pay for a service?
- Which services are needed now, and which later?
- Is the provider a fiduciary, and how is it paid?
Browse financial advisors offering family office services, accountants offering family office services, and advisors who work with ultra-high-net-worth individuals. For choosing any advisor, see how to choose a financial advisor.
Frequently asked questions
What is a family office?
A private organization that manages a wealthy family's financial affairs in one place, including investments, tax and estate coordination, accounting, insurance, philanthropy, and family governance.
What does a family office do?
It oversees investments and reporting, coordinates tax and estate planning with CPAs and attorneys, handles accounting and bill pay, reviews insurance, runs philanthropy, and supports family governance.
What is a multi-family office?
A firm that provides family office services to several unrelated families, sharing staff and costs across them. Multi-family offices that give investment advice generally register as investment advisers.
What is the minimum net worth for a family office?
There is no legal minimum. Families weigh the complexity of their finances against the cost of a dedicated team. Multi-family offices set their own minimums, disclosed in their Form ADV.
What is a single family office?
A family office that serves one family and is owned and controlled by that family, with its own employees.
What is a virtual family office?
A model where a lead advisor coordinates outside specialists to deliver family office services without the family hiring its own staff.
Tell us what you need and we will match you with firms that fit. It is free, and you decide who to talk to.
Related on Sam’s List
Some professionals on Sam’s List pay for visibility or leads. Inclusion and order do not rank professionals. This page is general education, not investment, tax, or legal advice, and it does not recommend any adviser, product, or strategy. Check any professional on Investor.gov and FINRA BrokerCheck before you hire. Firm names are never shown on Get a quote matches.