Family office trends Q&A: wealth preservation and succession planning

Family offices face rising complexity in balancing tradition with innovation, professional expertise with family values, and local structures with global footprints.

In this Q&A, Managing Director of our BVI office, Joan Johnson, discusses safeguarding wealth across generations.

How do family offices typically prepare for the transfer of wealth and leadership across generations?

Most families begin with two pillars:

• Effective structuring to ensure assets are protected, tax-efficient, and capable of supporting the family’s long-term objectives. This often involves the use of trusts, holding companies or foundations across multiple jurisdictions.
• Education and engagement are needed to prepare the next generation not only to inherit capital, but also to assume leadership with a clear understanding of the family’s values, purpose and responsibilities.

Successful succession planning recognises that this is a journey, not a singular event. Financial literacy programmes, exposure to governance processes, and opportunities to participate in investment or philanthropic decision-making all contribute to a smoother transition and to stronger intergenerational cohesion.

What challenges arise when families age and younger generations take on more decision-making?

Generational transition often brings tension between preserving legacy and embracing change. We see two common areas of friction:

• Alignment of values – younger generations may prioritise ESG, venture investing or social entrepreneurship, while older family members may favour more traditional asset classes and risk profiles.
• Pace of change – NextGen members, especially those with professional experience outside the family, may push for faster adoption of digital tools or organisational change, which can feel disruptive to a more conservative structure.

Family offices are well-positioned to mediate these dynamics, providing a forum for structured dialogue and ensuring decisions are made with both generational perspectives.

What are the key differences in approach between large, institutional-style family offices and smaller, more bespoke setups?

Larger family offices resemble institutional investors, with in-house investment teams, formal governance structures, and comprehensive reporting frameworks. They typically benefit from economies of scale, a wider talent pool, and internal control over decision-making.

Smaller offices - often in their first or second generation - usually prioritise agility and personalisation. These families may prefer to outsource investment management, legal or fiduciary functions to trusted advisers, retaining a focus on strategy and values alignment.

The right model depends on the family’s scale, complexity and appetite for operational involvement. Often, the quality of relationships determines effectiveness, not just the structure.

How can families determine whether they need a multi-family office, a single-family office, or a hybrid model?

Determining whether to establish a single-family office, join a multi-family office, or create a hybrid arrangement depends on the scale of the family’s wealth, the operational complexity, and the family’s privacy requirements.

• Single-family offices offer maximum confidentiality and customisation but require significant capital and governance discipline.
• Multi-family offices are more cost-effective and offer access to high-calibre professionals without the full operational burden.
• Hybrid models allow families to internalise strategic leadership while outsourcing execution to specialist partners.

Whatever the model, it should be reviewed as family dynamics evolve or as regulatory environments shift.

How important is governance in ensuring family harmony and continuity, and what models are most effective?

Governance is foundational; without it, even the best-structured family office risks fragmentation. Good governance brings consistency to decision-making, manages expectations and protects against disputes.

Effective frameworks typically include:

• Defined roles and responsibilities across family and professional leadership
• Scheduled, transparent communication channels (e.g. family assemblies, board meetings)
• Mechanisms for conflict resolution and future planning

Some families adopt formal boards with external advisers, while others use family councils or charter documents to capture shared values. What matters most is that governance reflects the family’s culture and is both clear enough to guide decisions and flexible enough to adapt over time.

How do you balance professional management with family influence in decision-making?

The most successful family offices respect both professional and family perspectives. External advisers bring objectivity, experience and discipline, and family members contribute long-term vision, values and purpose.

Strong governance helps ensure that professionals can act autonomously, while keeping the family involved in strategic direction. It’s important to build a model where both roles are recognised and valued.

Do you see family offices increasingly acting as “educators” for younger heirs, and if so, how?

Education is increasingly seen as core to the office’s purpose. A growing number of family offices now run structured NextGen development programmes, combining technical education (e.g. financial markets, legal structures) with soft skills training (e.g. leadership, negotiation, public speaking).

Others encourage participation in board meetings, investment committees, or philanthropic initiatives, providing exposure to the responsibilities of stewardship. Some even sponsor placements or partnerships with external institutions to broaden perspectives.

The aim is to cultivate heirs who are active contributors to the family’s legacy and impact.

What trends do you think will most significantly reshape the family office model in the next decade?

We see three structural trends redefining the family office landscape:

• Technology integration: offices increasingly invest in digital platforms for consolidated reporting, risk analytics and secure communication. AI and automation are further streamlining decision-making and operational efficiency.
• Sustainability and impact: NextGen influence is pushing capital towards ESG-aligned, mission-driven strategies. This is reframing not just what families invest in, but how they define success.
• Globalisation and regulatory complexity: with families and assets dispersed across continents, the need for cross-border tax planning, succession structuring and cultural fluency has never been greater.

How Praxis supports international families

Praxis is an independent provider of private wealth, corporate and fund services with over 50 years’ experience supporting individuals, families and companies globally. 

We work alongside newly established or multi-generational family offices to provide tailored support that enhances governance, strengthens operations and underpins long-term resilience.

Our family office services are designed to meet the evolving needs of global families. We help reduce the day-to-day administrative burden, deliver clear and accurate financial oversight, and implement governance frameworks that promote clarity, accountability and continuity across generations.

To find our more about how Praxis supports international families through wealth planning, or to learn more about our private wealth services, please reach out to Joan. 

This article first appeared as part of an interview with Joan in Private Banker International, published in October 2025.