Succession Planning in Family Offices #
Succession planning is the process by which family offices prepare for and execute leadership, ownership, and asset transfer within the family and across generations. Its goal is to ensure continuity, mitigate risk, and align the transition with family values and governance structures.1 Research shows that many families delay formal planning or struggle with difficult questions about future roles and management.2
Key Steps and Components #
- Early Preparation: Start planning succession well before anticipated transitions; involve all stakeholders to foster buy-in and avoid last-minute crises.3
- Ownership Strategy: Define a clear strategy for passing down ownership, management roles, and voting rights. Consider whether succession will be kept within the family or passed to outside professionals.4
- Heir Preparation: Invest in education, mentorship, and gradual career development for the next generation.5
- Governance Continuity: Use family constitutions and councils to anchor values and facilitate conflict resolution.6
- External Advisors: Involve professional advisors (legal, financial, strategic) for an objective and legally sound process.7
Barriers to successful succession often include discomfort discussing future roles, lack of qualified successors, and unresolved family conflicts. Regular communication and impartial support (including external advisors) are critical to an orderly handover.2
Global Wealth Transfer Trends #
The global “great wealth transfer,” led by baby boomers and expected to move trillions of USD to heirs by 2030, is reshaping succession planning.8 Swiss private banks and advisory firms now highlight systematic and customer-centered succession solutions to retain family assets and ensure managed transitions.9
Best Practices for Succession Planning #
- Document succession plans formally, review regularly, and update as needed
- Maintain transparent and frequent communication among all family members
- Prepare successors and establish mentoring or shadowing programs
- Engage external counsel for unbiased expertise
- Integrate succession planning into broader governance and asset protection strategies
