Is a Multi-Family Office Right for Your Family?
A Multi-Family Office Can Offer an Integrated Approach to Managing a Family’s Complex Financial Needs
Many people begin their relationship with a financial advisor by creating a financial plan or building an investment portfolio. Over time, however, your financial life may become too complex for some wealth management firms to address comprehensively. You may seek further guidance on optimizing wealth across generations or developing a long-term strategy for charitable giving. You may also find yourself working with multiple financial professionals specializing in investments, financial planning, tax, and estate services – and wish to bring those relationships together under one roof. In such cases, a multi-family office may provide the ideal solution for you and your family.
At Welch & Forbes, prospective clients often ask us about our family office approach because not all family offices are built the same. We find it helpful to start with the fundamentals: what a family office is, the services it can provide, and how to evaluate and compare firms.
What is a Multi-Family Office – and How Does It Work?
A multi-family office is a firm that provides comprehensive, dedicated wealth management and advisory services to multiple families across a variety of disciplines, not just investment advice or financial planning. Typically, multi-family offices provide each client a dedicated advisor and support team, with a focus on personalized attention. Other specialized services – such as tax or estate services – are also typically shared across multiple families.
A multi-family office also seeks to offer advisor relationship stability. Employee transitions and key personnel risk are carefully managed to create continuity and knowledge-sharing across multiple generations and branches of the family.
What Does a Multi-Family Office Offer?
A multi-family office combines a wide range of services within one firm, serving as a central point of integration for clients. Services may include investment management, wealth and legacy planning, tax planning, and estate settlement. A multi-family office team can also help families evaluate wealth-related opportunities, such as real estate purchases and business ownership.
Additional services involve supporting family governance, providing lifestyle management, administering bill payments, advising on equity compensation, and offering trust and fiduciary services. In particular, a multi-family office can help manage and transfer wealth across generations, often building relationships with multiple branches in a family. Other services can be coordinated through close partnerships with external firms and service providers, moving the responsibility from the family to a centralized multi-family office support team. Ultimately, a multi-family office model can free up time and capacity so a family can focus on other priorities.
When a Multi-Family Office Might Be Right for Your Family
If your family has substantial or complex wealth, you may benefit from working with a multi-family office – particularly if you have growing assets, multigenerational dynamics, or are navigating a major liquidity event – such as a business sale. Your busy family may find value in having one dedicated team focused on your financial needs and long-term goals across multiple specialties. A multi-family office can improve efficiency and coordination in managing your family’s wealth, contributing to greater peace of mind.
Key Questions to Ask When Evaluating a Multi-Family Office
Not all multi-family offices offer the same depth or breadth of service. As you consider your options, ask:
- Are core functions like investment management and tax preparation provided in-house, or outsourced? How comprehensive are these services?
- Are investment portfolios customized for each family’s needs and goals, or are they managed as part of a firm’s model portfolios?
- What additional offerings are available? For example, do they provide fiduciary services, such as trustee services or trust administration?
- How does the firm support the preservation, growth, and transfer of wealth across generations?
- Are they equipped to provide guidance around charitable giving and philanthropic planning interests?
- What is the firm’s history and longevity? How many years has it been serving families and multigenerational clients?
- How transparent is the fee schedule? Are costs consolidated or itemized, and are there any additional costs that may apply? For example, does the client incur additional fees for proprietary strategies or outsourced investment managers?
Carefully considering these types of questions can help your family identify a multi-family office model positioned to provide the integrated support you need (not a one size fits all).
Welch & Forbes: Our Multi-Family Office Approach
At Welch & Forbes, we have an enduring tradition of serving as a multi-family office for families with complex, multigenerational financial considerations. Our holistic approach brings together investment management, wealth planning, personal trustee services, tax preparation, and estate services under one roof. This structure allows us to gain a deep understanding of each family and provide comprehensive support for their individual needs and long-term goals. To learn more about how we may be able to support your family, please contact us online or call our Client Development team at 617-557-9800.
Disclosure: This information is provided for educational purposes only and does not constitute investment, financial, tax, or legal advice. Consult your tax advisor or legal counsel for advice and information concerning your particular situation. Welch & Forbes, LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.