When to Consider a Family Office: A Practical Framework

The term "family office" is used loosely — and often aspirationally. Understanding what a true family office is, when it makes sense, and how to structure it correctly is essential for any family approaching significant wealth.

A single-family office (SFO) is a private company established to manage the financial and personal affairs of one ultra-high-net-worth family. It typically employs a full-time team including a chief investment officer, accountants, tax counsel, and an estate attorney. Running an SFO cost-effectively generally requires a minimum of $100–200 million in investable assets.

A multi-family office (MFO) serves multiple families under one roof, sharing infrastructure and talent costs. MFOs offer most of the benefits of a dedicated family office at a fraction of the cost — typically appropriate for families with $10–100 million in assets.

The core services a family office provides go beyond investment management. They include consolidated reporting across all assets and entities, family governance and education, concierge services, philanthropic coordination, and inter-generational wealth planning.

Before establishing a family office, families should honestly assess whether the complexity of their financial affairs justifies the cost. A high-quality wealth management firm — particularly one with a multi-family office model — can replicate most family office functions without the fixed overhead, regulatory compliance burden, and talent acquisition challenges of a standalone structure.

At Meridian, we serve as a primary advisory partner for many families who benefit from family office-level service without the infrastructure cost. For our largest clients, we also assist in the design and governance of dedicated single-family office structures.