Family Office Costs


What does it really cost to manage multi-generational wealth effectively? Are my wealth management costs in line with other family offices like mine? In the years following the financial crisis, wealth owners continue to ask these questions and are paying attention to the costs associated with managing their wealth. They want assurance that the value they receive merits the cost.

Family Office Best Practices 

Complexity is the single biggest driver of wealth management costs. The Cost of Complexity: Understanding Family Office Costs outlines the cost of today’s family office using data from FOX Family Office Benchmarking™ and delves into the factors that most impact the total cost of wealth management. The total cost of wealth management equals family office costs plus external advisory costs plus external investment costs. This research explores the key components of investment costs – custody, investment consulting, and investment management fees. 

Structuring the family office to maximize cost-effectiveness and expense deductibility is top of mind for many FOX members. Review the Family Office Structures: Pros, Cons, and Considerations to get a sense of the options.

Communicating effectively about the costs of the family office is a challenge for most family office executives, but an informed client is a happy client. In the Trust & Estates article, The Elephant in the Room, FOX outlines the importance of frank and continual conversations about cost.

Family Office Industry Benchmarks

Who pays for the office? There are many different ways to allocate the cost of the office. The presentation Value, Equity, Sustainability covers common cost allocation and pricing practices. 

Compensation and benefits for family office staff is a key cost consideration. Competitive plans are also essential for success. With access to FOX Family Office Benchmarking Research, participating FOX members have the data they need to design the kinds of plans that will attract and retain top talent.

Toolkit Family Office Costs