Transitioning Family Office Leadership to the Next Generation

Family offices are organizations that manage the financial, legal, and administrative affairs of a family. They are often established to manage family assets and educate family members for multiple generations. It is essential to prepare for leadership changes in managing the family office.  A smooth transition of leadership takes years to prepare and implement. This transition can be a delicate process, and careful planning is needed to ensure continuity and success. This article includes five tips for preparing your family office for a transition in leadership to the next generation.

Establish a Succession Plan

A succession plan is a roadmap for the transition of leadership from one generation to the next. It should include a clear timeline for the transition (years), as well as guidelines for the selection and training of the next generation of leaders. A well-designed succession plan can help ensure a smooth transition and reduce the risk of conflict among family members.

Identify and Develop the Next Generation of Leaders

An early step in preparing for a transition of leadership is to identify and develop the next generation of leaders. This includes identifying family members who have the skills and expertise to take on leadership roles and providing them with the necessary training. It is also important to involve the next generation in the decision-making process and to provide them with opportunities to take on leadership responsibilities before fully transitioning into leadership.  This can be a difficult step for a patriarch to take but it is essential for success.

Honest Conversations

Communication is key to an effective transition of leadership. Many patriarchs are used to communicating downward, having others implement their vision but this is the stage where they must learn to listen to the ideas and input of the next generation.  It is also important to communicate openly and regularly with all family members and stakeholders about the transition process, including timelines, roles, and responsibilities. This can help reduce anxiety and uncertainty and promote trust and cooperation among family members.

Expect the Unexpected

Despite careful planning, unexpected events will occur during a transition of leadership. Is important to anticipate unexpected events, such as illness or death that may delay the plan and to have a contingency plan in place. This can help ensure continuity and stability during a time of change.

Engage External Advisors

External advisors, such as wealth managers, attorneys, and accountants can provide valuable guidance and expertise during the planning and transition of leadership in a family office. They can help develop succession plans, including educational components on navigating legal and financial issues, and provide objective advice to family members. Engaging external advisors can help ensure a successful transition and minimize the risk of conflict and misunderstandings.

Transitions take time and the buy in of all family members.  Mistakes will be made, things will be done differently by the next generation and patriarchs must be comfortable with allowing space for those to happen.  Creating a long-term plan, that includes collaboration of professional advisors, will strengthen your plan and the rising generations. Your family is your business, and your needs will evolve as your family grows in size, experience, and focus. By properly preparing for a transition of leadership, families can increase the probability of a smooth transition and preserve their legacy for generations to come.


Family Office Exchange, “Family Leadership Succession: Developing a Roadmap for Successful Leadership Transition”, accessed April 26, 2023: Family Leadership Succession: Developing a Roadmap for Successful Leadership Transition | Family Office Exchange, “Easing Family Office Leadership Transitions”, accessed April 26, 2023: Easing Family Office Leadership Transitions (

Forbes, “How to Transition a Family Business to the Next Generation”, accessed April 26, 2023: How To Transition A Family Business To The Next Generation (