Family Office structure: has yours evolved with the times?

Things change – families grow, priorities shift, and what once felt manageable can quietly become complex.

Family Offices are no exception. In our experience, many were set up with a relatively simple purpose and operating model – often designed around the founder, with minimal infrastructure and decision-making concentrated at the top. That may have worked when the family was smaller and needs were more contained.

But today, families are more diverse. Generational transition is underway, with rising cohorts of 20 to 40 year olds stepping into the conversation – bringing new expectations around transparency, involvement and alignment with values. Family Offices are becoming more professionalised, requiring more defined roles, clearer governance and stronger operational processes. Technology, too, has changed what families can – and should – expect. The rise of AI, automation and integrated platforms has expanded what’s possible in everything from reporting and analytics to risk management and cyber security. Manual processes that once seemed good enough now feel like weak points in an increasingly digital world.

And layered over all of that is investment complexity. Most Family Offices have moved well beyond domestic equities and property. Now they’re managing private equity, venture capital, hedge funds, private credit, international exposures and more – often at a much greater scale than ever before.

So the question becomes: has your Family Office structure kept pace?

In our conversations with Family Offices – both in Australia and globally – we often hear the same question: “How do we know if our Family Office is still working as it should?”

There’s no one-size-fits-all answer. But our experience tells us that the most effective Family Offices get eight core areas right. These aren’t just back-office functions – they’re the foundations that allow a Family Office to adapt and thrive.

Below, we break down each area, along with practical questions to ask of your Family Office (or yourself) to assess where your Family Office structure stands – and where it might need to evolve next.

As we outlined in our earlier article, From founders to future: The power of Family Office purpose, defining a purpose is not a philosophical exercise, but a practical tool. It is a living, evolving articulation of why the Family Office exists and should incorporate the family's values, priorities and vision. It is your guiding light for everything – from investment strategy to hiring, from governance to succession.

Ask yourself:

• What is our Family Office really here to do?
  

• If we fast-forward 20 years, what will success look like for our Family Office?
  

• Do we have a shared understanding of our purpose across generations and do the next generation feel inspired and are they engaged enough to carry it forward?
  

• How do we ensure family members are prepared to uphold the family’s legacy?

Succession doesn't just happen. It must be designed – and communicated.

Ask yourself:

• Is there a clear plan for the transition of ownership and leadership succession over time?
  

• Is that plan understood by both current and next generation family members?
  

• How involved are the next generation in the Family Office today? If not so much, what’s the plan for getting them more engaged?
  

Are we leveraging external, independent expertise to guide succession planning and decisions?

This covers everything from how the Family Office supports the family’s connection with any operating business and management of the Family Office (as a ‘business’).

Ask yourself:

• How does the Family Office interact with the family business?
  

• Is it clear what funding the family business can provide to the Family Office - how much funding might the Family Office need to provide to the family business?
  

• Are there clear family member liquidity and withdrawal policies, and for capital deployment?
  

• Is there a ‘business plan’ for the Family Office that clearly outlines the family’s purpose and vision, core values, key objectives and operational plans (governance and structure, investment strategy, income distribution policy, family governance and education) and financial projections?
  

• Does the business plan provide support for the family’s long term vision - including around areas such as philanthropy, family legacy projects and sustainability?

As investment portfolios diversify and become more complex, robust investment management becomes essential.

Ask yourself:

• Do we have a documented investment policy statement?
  

• How often is our asset allocation reviewed?
  

• Is there an investment committee with clear decision-making authority?
  

• Are performance, risks and fees independently monitored?

From bill payments to reporting, day-to-day functions underpin everything.

Ask yourself: 

• Is it clear which services the Family Office offers – and to whom in the family?
  

• Are our reporting systems delivering the right information at the right time?
  

• Are policies and procedures – from employment to cyber security – well documented, reviewed and updated regularly (at least annually), and followed in practice?
  

• Are we clear on who is authorised to make time-sensitive decisions?

Technology can be an enabler – or a barrier, depending on how well it’s understood and applied.

Ask yourself:

• Are our accounting and investment systems integrated, up-to-date and providing us with the information we need when we need it?
  

• How much manual data handling (or worse “wrangling”) are we doing – and at what cost? What value-add projects could staff be doing if we automated more?
  

• Do we regularly assess cyber security risks and controls?
  

• Are we thinking boldly enough about how automation and AI can strengthen what we do?

Good governance enables better decisions and clearer accountability.

Ask yourself:

• How are decisions made, and who has authority over what?
  

• Is there a formal family advisory board or other governance mechanism in place?
  

• Do we have a conflict resolution process that works – and is documented – to actively assist with family unity?
  

Are we drawing on outside voices to challenge our thinking?

The safeguard that helps protect your legacy long into the future.

Ask yourself:

• Are we meeting all tax, legal and regulatory obligations in relevant jurisdictions? This is our ongoing “license to operate”.
  

• Are family members living in different geographical jurisdictions, supported in meeting their personal compliance obligations?
  

• Do we have appropriate insurance and employment arrangements in place?
  

• When did we last formally review our compliance frameworks – with a particular focus on making sure there are no financial or reputational consequences for the family or the business?

The strongest Family Offices are those that evolve with intention – reviewing not just how they operate, but why they exist and who they serve. Getting the right structure in place across these eight areas isn’t just about reducing risk. It’s about identifying opportunities and creating the space for the family to grow with confidence and clarity.

And while privacy and discretion are essential – often core to why a Family Office exists – there’s also value in looking outward. If your office becomes too closed off, you risk missing out on the insights, ideas and practices that are helping other families navigate similar challenges.

The goal isn’t to follow the crowd, but to learn from it – to strike the right balance between staying private and staying informed.

As the world becomes more complex, so does the role of the Family Office. The question is: has yours kept pace?

If you’re unsure where to start or simply want a clearer view of how your current setup compares to best practice – we’ve developed a practical diagnostic tool that helps Family Offices benchmark their structure across the eight key areas.To learn more or have a quiet conversation about how your Family Office structure could evolve, get in touch.