Family offices and the families they support oversee more than $3 trillion in assets globally today1 and play an important role in financial markets. Given the $124 trillion wealth transfer expected in the United States through 20482, family offices are set to grow and evolve as the next generation takes over and the needs of the families change.
Against this backdrop, we recently set out to gain insight into today’s family office landscape. Through detailed surveys and interviews with family office decision-makers, we compiled a portrait of the modern family office: its origins and who it serves, and how it approaches investing, growing and preserving wealth, the use of credit and technology, and planning for the future.
Key findings
Today’s family offices have engaged, future-focused principals
More than half of the family offices in our study were founded by first-generation wealth creators who, in many cases, were seeking centralized oversight of their assets. When family offices are set up to serve multiple generations, they are most often founded by second- or third-generation heirs who are inheritors of legacy wealth.
Generation that created the family office
Primary reason family office was formed
73% of family offices with less involved principals anticipate the next generation will change the mission or purpose of the office, compared to 37% of offices with a highly involved principal.
Family members are active participants in the day-to-day operation of family offices. More than three-quarters of offices have principals who are moderately to extremely involved in managing operations, most often in the C-suite or on the board, where they help guide strategy, asset allocation and investment decisions, and governance. Family members with formal roles are particularly prevalent in offices with assets under management (AUM) between $500 million and $1 billion, as well as those founded by next-generation family members. We found that principals who are fully involved in the family office typically belong to longer-tenured offices that support more family members.
A generational transfer of control is on the horizon for many family offices in our survey. Seventy percent have been in existence for a decade or more, and one in three expect to transition control in the next five years. Six out of 10 anticipate a transition in the next decade. We found that highly involved principals tend to take a more active, deliberate role in succession planning, with more than 40% beginning to onboard the next generation as soon as they express interest or when they reach a certain age or milestone, compared with less than one-third of less-involved principals.
Key challenges facing the modern family office
When asked about their biggest challenges today, family offices offered a wide range of responses. Many factors differentiate these offices: how long they’ve been in operation, their assets under management, the generation and involvement of the principal, the number of employees, and more. However, we identified common themes—investing, growing and preserving wealth, the strategic use of credit, the role of technology, and planning for the future—that apply broadly to family offices today. A detailed look into each of these themes is available in the research report.
Top challenges of family offices today
Percentage of family offices challenged by each category and sub-category
Investing, growing and preserving wealth
How family offices currently allocate their investment portfolios and perceive opportunities, and their wealth preservation plans
The strategic use of credit
How family offices view and use credit today
The role of technology
How family offices are using technology and artificial intelligence, and concerns about cybersecurity
Planning for the future
The governance structures family offices currently have in place and how they are preparing for and bringing in the next generation
The Bank of America Family Office Study delivers a snapshot of today’s modern family offices, including their size and origins, as well as their perspectives on investing, wealth planning, credit and banking, technology, governance and the transition to the next generation. The findings offer insights into the opportunities and challenges family offices face today. They also show how factors like assets under management, the level of principal involvement, connectivity to a family business, and whether the office was started by the original wealth creator or their heirs can influence an office’s approach and decision-making.
Methodology
This study represents 335 family office decision makers in the United States with executive level roles (e.g., principal, president/founder, C-suite title, executive-level investment professional). Target offices include offices serving a single family or multiple unrelated families and managing at least $25 million in assets with 60% holding $500 million or more. This survey was conducted by Bank of America in partnership with research firm Escalent and was fielded in May through June of 2025.
