Why Roughly Half of Family Offices Have Not Prepared For Succession
By Brian Famigletti, Managing Director & Head of Marketing
What Is a Family Succession Plan?
A recent report by investment banking company UBS found that about half of the clients of family offices have not prepared for succession. Forty-seven percent of these offices did not have a plan in place for the family members, according to the annual report that surveyed more than 300 single-family offices across the globe.
While the role of a family office can differ, most function as advisors dedicated to managing the wealth of ultra-high-net-worth individuals. Single-family offices are focused on one family, while multi-family offices have several clients.
They offer a range of financial services, including investment planning, tax services, and charitable giving. They can also help their clients plan for the future by drafting a formal, written succession plan.
Why Succession Planning Matters
Creating a succession plan for your family business or businesses can help ensure your family’s legacy, from preserving shared values to securing long-term financial success. A family office will help to structure and implement those decisions in the most tax-efficient way.
Succession planning is the cornerstone of how ownership and responsibilities will be transferred. It may also help spur action among current leaders to identify — and prepare — those successors before it’s too late. Early planning can also help minimize taxes on wealth transfer, which is a key consideration for many.
Discussing the future — and who will take over — can be a challenging subject. The process of drafting a succession plan might bring out complicated family dynamics, for instance. This thought alone might prevent heads of families from wanting to write out a formal plan.
A Quick Guide to Succession Planning
According to the UBS report, almost a third of the families without succession plans in place felt there was still plenty of time, while others hadn’t yet decided what they wanted to do. Almost 20% said they didn’t have time to talk about it.
However, early preparation can ensure your wishes are carried out and help to protect everything you have built. Without a plan, your heirs may face hefty tax bills or even wind up in legal and financial battles. In a worst-case scenario, your legacy might be put in jeopardy.
A family office can facilitate difficult conversations and act as a neutral third party. This can help you to:
- Develop a shared vision for the family office’s future. This includes agreeing on collective and individual goals. From here, your team can establish a timeline and suggest ownership structures and transition strategies.
- Identify successors and agree on their roles. This can be tough, but your advisors are there to help. They may even bring in outside consultants who can conduct leadership assessments. Successors may need additional training before assuming their role, and your family office can assist in making those arrangements.
- Address any potential tax implications. Family offices should have the expertise to navigate ever-changing tax rules and find tax-efficient ways to implement your wishes.
Does your family office need help with succession planning? Contact Griffin Asset Management and speak with an expert today. Our team specializes in customized wealth management and planning services that meet each family’s individual needs.
Sources:
UBS: UBS Global Family Office Report 2025: all eyes on the global trade war
RBC: Why only half of North American family offices have a succession plan
Investopedia: Family Office: What It Is, Responsibilities, and Types
JPMorgan: Family and Family Office Advisory
