Once an exclusive privilege of billionaires and families with entrenched dynastic wealth, the concept of the family office — traditionally a highly private structure designed to oversee investments, estates, and intergenerational succession — is now experiencing a profound and understated transformation. What was once a financial and administrative domain reserved for legendary names such as the Rockefellers and the Rothschilds has begun to evolve into a far more inclusive framework, now available to a new generation of clients. Today’s entrepreneurs, start‑up founders, and even members of the growing upper‑middle class are seeking sophisticated ways to manage, preserve, and ultimately perpetuate their wealth in a professional manner once accessible only to the financial elite.
As María Eugenia Mosquera, Head of Wealth Planning Key Clients & Family Office Services at Julius Baer, recently explained, the conventional assumption that one must possess a multibillion‑dollar fortune to warrant the creation of a family office is no longer valid. According to her, this notion is based on anachronistic thinking that fails to reflect the flexibility and modernization of present‑day wealth management. Likewise, she challenges the widespread misconception that the family‑office model is unmanageable or excessively complicated for those without hereditary riches. In her view, such perspectives overlook the extraordinary adaptability of modern structures, which can now be customized to meet the specific goals, ethical outlook, and financial scale of any motivated family or entrepreneur. Mosquera wisely emphasizes that the main obstacle preventing many families from adopting this model is rarely practical feasibility, but rather the uncertainty of knowing where or how to commence the process.
In today’s increasingly digital financial environment, families are progressively replacing traditional wealth‑management arrangements with innovative “virtual family offices” that merge technology, discretion, and alignment with personal values. This new approach enables families not only to protect their financial legacy but also to cultivate shared governance and sustain the cohesive vision that binds future generations together.
A global survey jointly conducted by Julius Baer and PwC underscores this growing trend. The study, encompassing 2,485 experts in wealth management and family‑office operations across Europe, Asia, the Middle East, and Latin America, revealed that 41 percent of ultra‑high‑net‑worth respondents identified cost as the primary obstacle to establishing a dedicated single‑family office. Following closely were concerns related to managerial complexity and the perception that their existing level of wealth was insufficient to justify such an undertaking. According to Mosquera, however, these apprehensions frequently stem from misconceptions. In her analysis, the rapid advancements in technology, evolving regulatory frameworks, and increasing global mobility have collectively given rise to new models that allow owners of comparatively smaller fortunes to achieve the same level of professionalism, oversight, and sophistication that once characterized only billionaire operations.
She further notes that modern family offices operate on a spectrum of flexibility. Some families prefer to retain hands‑on control of certain aspects, such as philanthropy or family governance, while delegating specialized investment, legal, and accounting tasks to external professionals. Others may prioritize access to a network of experts over direct management, choosing to act as strategic decision‑makers while outsourcing operational responsibilities. In fact, most contemporary family offices adopt a hybrid structure — maintaining critical oversight internally while leveraging external advisers for high‑complexity or resource‑intensive services.
From Julius Baer’s perspective, any family — regardless of net worth — can embrace the principles of a professional family‑office structure. The same governance models that once guided Renaissance‑era households and noble estates can, in today’s environment, be translated into efficient systems for entrepreneurs, business owners preparing for an exit, and globally mobile families seeking continuity at a fraction of historical costs.
Mosquera suggests beginning with a deliberate, staged approach — a “phased, thoughtful evolution.” Families expecting a liquidity event, such as the sale of a business, can start by formalizing existing informal practices: establishing defined governance frameworks, articulating investment philosophies, and implementing regular channels for communication and decision‑making. Even a single trusted adviser, accountant, or family representative can serve as the nucleus from which a more comprehensive structure gradually emerges.
To remain agile, Julius Baer recommends considering hybrid or virtual family‑office models. The report defines the Virtual Family Office (VFO) as particularly well suited to globally mobile families, since it relies on digital platforms and distributed teams to provide cross‑border coordination and responsive, cost‑effective service. This model delivers the strategic control and personalization of a traditional family office while eliminating the heavy fixed costs associated with maintaining a dedicated staff or physical premises.
Another guiding principle involves determining what to outsource and what to manage internally, a decision largely dependent on each family’s priorities, operational complexity, and preference for hands‑on management. Many opt to delegate specialized areas such as legal compliance, tax optimization, and external portfolio management, while retaining personal engagement in philanthropy, education, or family governance. This hybrid strategy strikes a productive balance between independence and efficiency, allowing families to maintain influence where it matters most while benefiting from expert external input.
Jurisdictional choice also plays an indispensable role in the planning process. The home base of a family office can affect matters of legal stability, regulatory transparency, access to talent, levels of privacy, and even the family’s broader lifestyle. While Switzerland, Singapore, Hong Kong, and Dubai remain prominent international hubs known for their reliability and favorable frameworks, Mosquera observes that many families now operate in a fully virtual capacity. Geographic boundaries matter less in an era where data, advisers, and decision‑making sessions can be coordinated seamlessly across continents through secure online platforms.
Ultimately, longevity and meaning within a family‑office structure derive from coherence with the family’s fundamental values. As Thomas Frauenlob, a member of Julius Baer’s Global Wealth Management Committee and Co‑Head for the Western Markets and Switzerland Region, remarks, a carefully designed family office can become the cornerstone of both enduring wealth preservation and successful intergenerational succession. When anchored in shared purpose, ethical investment principles, and clearly defined goals, such an office produces benefits that extend far beyond mere financial management, outperforming generic, one‑size‑fits‑all solutions. Mosquera echoes this sentiment by emphasizing that there is no universal blueprint for success in wealth stewardship. Each family must instead curate a strategy that resonates with its individual history, ambitions, and values, thereby transforming the family office into both a financial and cultural institution devoted to safeguarding its legacy for generations to come.
Sourse: https://www.businessinsider.com/how-smaller-fortunes-use-family-offices-to-build-lasting-wealth-2025-10
