What is a family office?

We all want to build wealth – and for many people, that goes beyond acquiring money. By growing our assets and planning for a secure future, we create opportunities not only for ourselves, but also for our loved ones. Later, when we pass the baton, we transfer financial freedom and a sense of optimism to the next generation.  

However, as our assets grow, managing them becomes more complicated – especially if they’re spread across multiple countries and are subject to the whims of numerous legal systems.  

That’s where a family office can make a real difference. Designed to bring structure and strategy to significant wealth, a family office offers tailored support across everything from investment management and tax planning to succession and lifestyle services. 

This guide is for individuals or families with increasingly complex financial lives who are exploring the option of establishing a family office in the UAE, Jersey or elsewhere. 

Important: The information in this guide is general in nature, not legally binding, and should not be considered financial or investment advice.   

Key takeaways: 

• Family offices bring structure and strategy to significant wealth, offering investment management, estate planning, tax strategy and philanthropy. 

• Single-family offices (SFOs) provide full control for ultra-high-net-worth families, while multi-family offices (MFOs) offer shared infrastructure and reduced costs. 

• To set up a family office, individuals or families should define their long-term goals and estimate the costs required to build a team and governance model.  

• Choosing the right jurisdiction and financial partner is vital – especially when managing international assets or establishing a family office abroad. 

  
  

What is a family office? 

In simple terms, a family office is an entity designed to oversee the whole of a wealthy individual's or family's financial ecosystem. Unlike traditional wealth management firms with numerous clients, a family office operates solely for the benefit of its principal family, or, in the case of a multi-family office, a select few. 

Family offices are responsible for a wide range of tasks, which can include investment management, estate planning, tax strategy and philanthropy.  

Crucially, family offices emphasise privacy. Wealthy families often prefer to be discreet when managing their affairs, and a dedicated office provides a shield from public scrutiny. Family offices are also tailored precisely to the family's unique circumstances and long-term goals – for example, ensuring the preservation and growth of wealth for future generations. 

Types of family offices 

Family offices generally fall into two main categories: single-family offices and multi-family offices.  

Single-family office (SFO) 

A single-family office (SFO) is established by – and for the benefit of – one ultra-high-net-worth family. By taking this approach, families can customise services and maintain complete control over the management of their finances.  

The SFO model allows for deep integration of the family's values and priorities into every decision. However, the operating costs are typically quite high, making this option most viable for families with $50 million or more in assets. 

Multi-family office (MFO) 

A multi-family office (MFO) serves several families at the same time, sharing its infrastructure and operational costs across its client base. This shared model helps to reduce individual family expenses.  

While MFOs still offer tailored services, they tend to be less customisable and exclusive than those offered by an SFO. However, MFOs can be an attractive option for families who need professional management but would prefer not to incur the full costs of establishing a dedicated office. 

What services do family offices provide? 

Family offices provide a wide range of services designed to address the unique needs of wealthy families, including: 

• Financial planning and investment management: Crafting personalised financial plans, overseeing investment portfolios, managing risk and strategically allocating assets across various classes. 

• Estate and succession planning: Developing and implementing strategies for efficient wealth transfer from one generation to the next, including the creation and management of trusts and wills. 

• Tax planning: Structuring assets and transactions in a way that minimises tax liabilities across all relevant jurisdictions. 

• Philanthropy: For families with charitable inclinations, the family office can manage foundations, develop giving strategies and oversee grant-making activities. 

• Legal and compliance support: Dealing with complicated rules and regulations, ensuring compliance with relevant laws and managing any legal disputes that may arise. 

• Family governance: Establishing structures and processes for family communication and decision-making and educating future generations about wealth management. 

• Lifestyle services (optional): Some family offices extend their services beyond core financial management to include travel arrangements, property management, concierge services and other personal needs. 

  
  

Is a family office right for you? 

Choosing to establish a family office is a personal decision that depends on your individual goals and financial setup. Many individuals and families consider these factors when deciding how to move forward: 

• Increasing wealth: As your wealth grows, the complexity of managing it can outstrip a traditional advisor’s capabilities. 

• Increasingly complex finances: Diverse investments, international holdings and intricate business structures often call for a more coordinated approach. 

• Intergenerational planning needs: If you would like to preserve and transfer wealth to future generations, a family office can provide dedicated expertise. 

• Desire for centralised control: A family office offers a single point of oversight for all financial matters, providing greater control. 

While considering your options, weigh the pros and cons of setting up your own SFO (complete control, high cost) versus joining an MFO (shared cost, less exclusivity). It's also worth exploring alternatives – for example, private banks or wealth management firms – that offer specialised services without the full commitment of a family office. 

How to set up a family office 

Setting up a family office is a significant task that demands careful planning and execution. What follows is a brief overview of the key steps involved. 

Step 1: Define your goals  

Clearly articulate your family's investment priorities, core values, and long-term legacy aspirations. This will form the foundation of your family office's strategy. 

Step 2: Assess scope and cost  

Determine which services and solutions you need, what the necessary staffing levels might be, and the ideal governance structure for your family office. This will help you estimate the operational costs involved. 

Step 3: Choose your structure  

Decide whether a single-family office (SFO), a multi-family office (MFO) or a hybrid model best aligns with your needs and resources. 

Step 4: Hire your team  

Recruit experienced professionals, potentially including wealth advisors, lawyers, accountants and a dedicated family office CEO to oversee operations. 

Step 5: Establish clear governance  

Develop clear roles, responsibilities, decision-making processes and communication protocols. It's important to understand that governance structures can vary significantly between jurisdictions, so it’s essential to consult with an expert before proceeding. 

Choosing the right financial partner for your family office 

The benefits of a family office are clear: greater control over your financial destiny, customised solutions tailored to your unique needs and the opportunity to focus on building a legacy for future generations. As you explore these options, we encourage you to speak with trusted advisors to gain further insights. 

Finally, it is vital to select the right financial partners to support your family office, particularly if you plan to establish one overseas – for example, in the UAE or Jersey.  

At Interpolitan Money, we have extensive experience working with family offices in a range of international jurisdictions. By keeping discretion and privacy in mind and dedicating the necessary resources to cross-border compliance, we help family offices transact smoothly across regions. 

To learn more about how Interpolitan Money collaborates with family offices and how our tailored solutions can support your global financial needs, please contact us today.