Family offices have long been an important part of wealthy families’ financial and legacy planning. These offices are dedicated teams of professionals who manage the finances, investments, and other wealth-related matters for high-net-worth individuals and their families. However, societal changes over the past several decades have had a significant impact on family offices and the services they provide.
The trend towards individualism has affected family offices, making them vital in providing financial planning and wealth management services. These offices specialize in investment management and tax planning, offering expertise to help high-net-worth individuals achieve their long-term financial goals.
Steven Covey in his book The 7 Habits of Highly Effective Families identified this societal change from a family-friendly to a family-hostile society. He recognized that families can no longer rely on the rest of civil society or on the government to support and reinforce family values. The book was published in 1997 and he could already see a change in contrast to what it was like in the last 30 to 50 years. One can only imagine what Steven would say if he saw how much further society has shifted from pro-family to anti-family as of 2023.
Another factor that has impacted family offices is the rise of technology. Technology has made it easier for families to manage their finances and investments, but it has also increased the complexity of these tasks. Family offices must now have expertise in digital security, data analytics, and other technological fields to provide their clients with the best possible service.
Another significant societal change that has impacted family offices is the decreasing emphasis on the importance of family and family values in mass media. This highlights the importance of building and maintaining trustful relationships with children and future generations to pass on the values that matter the most, including the value of family. Family offices can play a key role in supporting families in this endeavor by providing guidance and resources for intergenerational wealth transfers and family governance.
