Every day we become more familiar with family offices and their conflicts. Whether it’s the sibling rivalries in the hit show Succession or the disputes between the Murdoch family members in real life, these are just two examples of power struggles within a family empire. Both scenarios remind us that when the rules are not clear, personal differences can jeopardize a family legacy.
In September 2024, Deloitte[1] confirmed that the growth of family offices is unstoppable. Today, there are more than 8,000 worldwide, and it is estimated that by 2030 there will be more than 10,700. These could go from managing US$3.1 trillion to US$5.4 trillion in assets and add up to a total wealth of US$9.5 trillion.
But when we talk about business legacy, it is not only about economics, but also about preserving history, vision, and a family's purpose. These companies, in addition to being an economic vehicle, are also a cultural and emotional institution where the risk is not usually financial, but human.
That is why it is essential to have clear rules, since anything that is not regulated will sooner or later become a conflict. And if that happens, it can have consequences such as strained relationships, loss of trust, and risk the operation.
That is why families who think in the long term do not avoid difficult conversations. On the contrary, they face them head-on and establish clear rules on essential issues such as roles, access, rules of coexistence, succession, and conflicts of interest. Let's look at some of the best practices that we recommend implementing today for peace of mind tomorrow.
1. Define Roles and Boundaries
One of the biggest mistakes in family wealth management is assuming that all members have the right to express their opinions or make decisions on equal terms. Practice shows that this only leads to paralysis or disputes. Defining clear roles means establishing who oversees strategy, who participates in operations, and who, even if not directly involved in management, should be kept informed. This framework prevents decisions from being made based on implicit hierarchies (“the eldest decides”) and instead ensures they are based on formal competencies and responsibilities.
2. Establishing Access Criteria
A family name cannot be the only passport to a position within the family business. Allowing automatic entry creates two problems: first, it weakens the professionalization of management; and second, it demotivates those who have demonstrated ability or merit.
Therefore, it is advisable to define minimum profiles of training, experience, and professional ethics for positions. Some families even require that interested parties work at least five years outside the family structure before joining it. This does not exclude anyone, but it does require each member to arrive prepared, with an outside perspective and real value to contribute.
3. Set Rules for Coexistence
Personal tensions are inevitable in any family. What makes the difference is how they are managed. This is where family protocols come into play, acting as an internal constitution that establishes rules on how to participate, what behaviors are acceptable and which are not, and how disagreements are resolved. These rules make it possible to separate personal things from business, preventing a conflict between siblings, cousins, or uncles from affecting investment or management decisions. If emotions or old resentments are not addressed, they end up being projected onto the company with long-term negative effects.
4. Coordinate Governance and Succession
Succession is probably the most difficult conversation, because it involves talking about retirement, incapacity, death, and the future. However, not planning for succession is a recipe for chaos. A well-structured family office establishes from the outset how the transfer of power will take place and defines whether there will be a board of directors, a succession committee, and clear rules for appointing a new leader. This provides certainty not only to the family, but also to advisors, suppliers, and stakeholders.
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Thinking about the future is never easy. Talking about succession, rules, and boundaries can be uncomfortable, so it is often put off until “later.” But when it comes to family offices, time is against you, and what is not regulated in a timely manner becomes a conflict. And when it erupts, it not only wears down family relationships, but can also compromise the wealth built up over generations.
That is why starting these conversations today, even if they are uncomfortable, is the wisest decision. It means protecting trust, ensuring continuity, and honoring what previous generations started. In other words, regulating today ensures that legacy will endure over time.
If you have any questions, please do not hesitate to contact us.
[1] Deloitte Private’s latest report in its Family Office Insights Series – Global Edition explores the rapid expansion of family offices and offers a vision of the future landscape: https://www.deloitte.com/global/en/about/press-room/global-edition-explores-the-rapid-expansion-family-offices-and-ffers-vision-of-the-future-landscape.html