Latest Research Looks Inside The Modern Family Office

The Bank of America Family Office Study: Perspectives on the Modern Family Office reveals that the next decade will be a defining era for the world’s wealthiest families. Generational transitions, economic optimism, and rapid technological advancements are reshaping how family offices manage and preserve multigenerational wealth.

With 87% of family offices yet to be passed down to the next generation — and 59% expecting that transition within the next 10 years — leadership handovers are poised to bring new approaches to investing, philanthropy, and the use of technology. In fact, among family offices with less engaged principals, 73% of those surveyed expect the next generation to redefine the office’s mission or purpose.

“As younger generations step into leadership roles, they are poised to redefine what it means to manage multigenerational wealth — from integrating Artificial Intelligence to expanding philanthropic missions,” said Elizabeth Thiessen, Head of Family Office Solutions, Bank of America Private Bank.

“This evolution will shape the modern family office for generations to come.”

The inaugural study surveyed 335 family office decision-makers across North America to understand how these organizations are evolving. Key findings include:

Top Challenges For Family Offices Today

Family offices identified their most pressing challenges as investing, growing and preserving wealth (64%), planning for the future (56%), the strategic use of credit (50%), and navigating technology (44%).

Innovation through AI and automation: More than half (57%) of family offices have utilized artificial intelligence for investment research and strategy. Automation is widely used for forecasting (76%), alternative investment analysis (74%) and portfolio modelling (73%).

Philanthropy’s next chapter: As younger leaders prioritize social impact, 51% of family offices expect philanthropic goals and strategy to play a greater role following succession. Seven percent of offices were founded primarily to serve philanthropic or legacy missions.

Economic optimism is strong: Over 60% of family offices expect growth in U.S. stock markets, private equity, and M&A activity in the coming year. Among offices managing $500 million or more, more than half anticipate an increase in U.S. GDP.

Alternative investments are a growing priority: Family office portfolios are now nearly evenly split between marketable securities and alternatives. Private equity, direct investments in companies, and real estate are viewed as the most promising opportunities.

Operational complexity: Family offices oversee intricate operations that go far beyond investment management. Many handle daily banking, estate planning, tax filings, household staffing, and manage dozens — or even hundreds — of bank and investment accounts.

Family businesses remain foundational: Sixty percent of family offices were founded with assets from a family business, and 85% continue to generate income from family-owned enterprises. These businesses often share infrastructure, personnel, and platforms with the family office.

Cybersecurity a critical concern: Nearly one-third of family offices or supported family members have experienced a cyberattack, with 40% reporting a significant impact on family assets. Larger offices face greater risk, and 10% of offices managing less than $500 million have no formal cybersecurity protections in place.