The wealth management landscape for ultra-high-net-worth families has rarely been more complex. Geopolitical volatility, shifting tax policies, stricter governance standards and the changing investment priorities of younger generations are reshaping how family offices operate.
Families are diversifying into unfamiliar sectors, reassessing jurisdictional choices and professionalizing their operations at a faster pace than ever before, according to TMF Group's recent report on private wealth and family offices.
For family offices, building in resilience to rising global risk is no longer just about wealth preservation; it is about ensuring that operations, governance and structures can withstand turbulence while being able to take advantage of new opportunities.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Here are 10 practical steps family offices are considering to strengthen their resilience.
Step No. 1: Diversify beyond the familiar
Traditionally, wealthy families have tended to concentrate on sectors they know well, such as real estate, infrastructure and energy.
Today, they are diversifying into areas like AI, digital assets, renewables and sustainable agriculture. These industries present unfamiliar risks, but also potential for growth and relevance to next-generation priorities.
The challenge is to avoid "blind diversification" driven by headlines rather than due diligence. Families that succeed with diversification have often started by co-investing with partners who have sector expertise, or by hiring managers with direct operational knowledge.
The goal is to reduce concentration risk while also learning how to operate effectively in emerging or unfamiliar sectors.
Step No. 2: Choose jurisdictions for stability, not just tax advantages
Tax planning remains important, of course, but family offices increasingly weigh institutional stability, rule of law, transparent rules and enforceable cross-border agreements when deciding where to invest.
Family offices that prioritize these attributes gain predictability and reduce exposure to sudden regulatory shifts.
For example, for non-U.S. citizens looking to set up in the U.S., potential changes to income and estate tax thresholds create uncertainty on whether the cost of a U.S. residency (in pure tax terms) could rise.
As part of a broader assessment, however, jurisdictions that offer clarity and enforceability often prove more valuable in the long term than those offering only short-term fiscal advantages.
Step No. 3: Build governance frameworks that go beyond tradition
Traditionally, many family offices have historically relied on a patchwork of advisers — lawyers, investment managers and accountants — without integrated oversight.
The move toward an enterprise-level governance framework helps families coordinate decision-making, ensure compliance across borders and safeguard their reputation.
Family offices are building up resilience by establishing independent boards, defining formal reporting lines and conducting regular audits.
Some also create family constitutions or charters to clarify decision-making authority across generations.
Such measures reduce the risk of disputes and ensure continuity even when leadership changes unexpectedly.
Step No. 4: Professionalize talent
A key driver of resilience is the calibre of the professionals managing family office operations. Family offices are increasingly appointing chief executives, financial officers and compliance specialists with international experience.
The challenge, however, is retention: Competition for senior talent is intense, especially in hubs such as Dubai, London and Singapore.
For family offices still building scale, employing a full-time, in-house executive team may be premature. In this case, drawing on external expertise for specific functions can provide institutional-grade professionalism without the cost or commitment of hiring in-house.
Family offices can test new markets or sectors — with proper governance in place — while retaining the flexibility to expand later.
Once the scale of investments justifies it, responsibilities can be transitioned to permanent staff.
In practice, many family offices combine in-house leadership with targeted outsourcing for specialist support to ensure resilience.
Step No. 5: Incorporate next-generation values into long-term strategy
Successors to family wealth are often more focused on ethical and sustainable investment priorities, and their interest in impact investing, green business and philanthropy is not a passing trend.
Integrating these values into the family's long-term investment strategy ensures smoother generational transitions and helps protect against future reputational risk.
Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.
One practical approach that some family offices apply is to create parallel investment portfolios that allocate a defined share of capital to ethical, socially focused and responsibly governed businesses.
This enables younger family members to take a hands-on role, without disrupting the overall wealth strategy, while giving the family office a structured way to evaluate the performance of responsible investments.
Step No. 6: Take philanthropy seriously as an operational activity
Often, family members — especially younger ones — want to be actively involved in philanthropy, rather than simply making passive donations. Establishing charitable trusts, setting clear governance rules and measuring social outcomes can make philanthropic ventures more effective.
The growth of family-run charitable trusts reflects a shift from one-off giving to structured, multigenerational impact.
Offices that treat philanthropy with the same rigor as other investments — by tracking outcomes and appointing skilled managers — find that this strengthens family cohesion while also enhancing public reputation.
Step No. 7: Keep ahead of compliance complexity
Compliance requirements, from anti-money-laundering rules to inheritance tax policies, vary widely and can evolve quickly. Building resilience into family offices means treating compliance not as an administrative burden, but as a core function.
This involves setting up internal compliance capabilities or engaging independent external providers who understand local regulatory environments.
A proactive approach that includes monitoring legislative pipelines and running regular compliance audits can prevent costly remediation later. It also reassures regulators and counterparties that the family office is operating transparently and responsibly.
Step No. 8: Embrace technology for oversight and transparency
As family offices expand across jurisdictions, digital tools that provide centralized oversight of entities, reporting obligations and operational risks are becoming essential. Cloud-based platforms can consolidate data, track compliance deadlines and provide real-time insight into global operations.
Technology also enables families to maintain transparency with multiple generations. Secure portals can enable family members in different regions to access up-to-date financial reports, philanthropic updates and governance documents.
This reduces misunderstandings and keeps all stakeholders aligned, even when they are geographically dispersed.
Step No. 9: Foster collaboration with peers and partners
Family offices are increasingly pursuing joint ventures with other family offices when entering unfamiliar industries or regions. This builds resilience by spreading risk, pooling expertise and accelerating learning.
Collaboration also extends to professional advisers — such as administrators, trustees and compliance specialists — who provide vital infrastructure for offices that cannot build every function in-house.
Step No. 10: Stress-test structures with scenario planning
Political disruption, regulatory changes and new trade policies can happen overnight. Uncertainty around tariffs, for example, has already disrupted private equity funds that depend on international supply chains.
Increasingly, family offices are using scenario planning and risk-weighted models to test the impact of multiple outcomes, such as new tax policies, capital flow restrictions or market shocks.
This kind of what-if analysis not only highlights vulnerabilities, but also enables family offices to build playbooks for rapid response.
For instance, knowing in advance which jurisdictions offer fast-track relocation options, or which structures provide the best protection in the event of sudden regulatory changes, can make all the difference.
Resilience in family offices is no longer just about weathering storms: It is about building operational strength, professional talent and governance models that adapt to shifting compliance needs and changing expectations of next-generation investors.
Family offices that take a structured approach — choosing stable jurisdictions, investing in governance, embracing professionalism and aligning with ethical priorities — will be better placed to thrive in an unpredictable world.
Related Content
- Nine Types of Trusts for High-Net-Worth Estates
- Average Net Worth by Age: How Do You Measure Up?
- What Is a Good Inheritance? Six Great Assets to Inherit
- Estate Planning for Millionaires
- Wealth Transfer Is About More Than Just Money
-
Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
How to Keep Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Are You Ready for 65? The Medicare Initial Enrollment Period Quiz
Quiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your Budget
Three steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
Giving Tuesday Is Just the Start: An Expert Guide to Keeping Your Charitable Giving Momentum Going All Year
Instead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard Personal Injury LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
6 Jimmy Buffett Lyrics Every Retiree Should Live ByNo, it's not just Parrotheads who can learn something from the legendary rocker.
-
A Financial Adviser's Health Journey Shows How the 'Pink Tax' Costs WomenFact: Women pay significantly more for health care over their lifetimes. But there are some things we can do to protect our health and our financial security.
-
I'm a Cross-Border Financial Adviser: 5 Things I Wish Americans Knew About Taxes Before Moving to PortugalMoving to Portugal might not be the clean financial break you expect due to U.S. tax obligations, foreign investment risks, lower investment yields and more.
