Family offices may operate behind the scenes, but they have become one of the most influential forces in global finance. Today, these private organizations manage more than $3 trillion in assets worldwide, according to Bank of America's latest family office study. And with a massive $124 trillion wealth transfer expected in the U.S. alone by 2048, their role is set to expand even further.
Below is a closer look at how these offices work, who runs them, and why the next decade could redefine wealth management for generations.
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A Quiet but Powerful Financial Engine
Family offices are private companies built to manage a wealthy family's financial life — including investments, trusts, businesses, and even administrative needs. Some oversee dozens of bank accounts, multiple properties, philanthropic efforts, and day-to-day bill payments. Others run more like mini-corporations, complete with C-suite executives and specialized staff.
Nearly 60% of offices surveyed by Bank of America were created by first-generation wealth creators, while many others arose from long-standing family businesses. This connection remains strong — 85% of family offices still generate income from family-owned enterprises.
Generational Change Is Coming Fast
Leadership transitions are one of the biggest trends shaping the modern family office. Almost 59% expect a handoff to the next generation within the next decade, according to the study.
These transitions can be complicated, with offices managing far more than just investment portfolios. "They oversee multiple accounts, trusts, businesses, and family dynamics," Elizabeth Thiessen, head of family office solutions at Bank of America, told Benzinga. She said that mission drift is a real risk — 73% of offices with less-involved principals expect the next generation to change the office's purpose.
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Successful transitions tend to start early. According to Thiessen, highly involved principals often begin onboarding future leaders when they show interest or reach key milestones. Yet only 40% of offices have formal succession plans in place.
Technology and AI Are Rewriting the Playbook
Younger generations are pushing family offices toward more advanced technology and automation. The study found:
- 57% already use AI for investment research
- 76% automate cash-flow forecasting
- 74% use automation for alternative-investment analysis
Thiessen told Benzinga that next-generation leaders are likely to accelerate this shift, adding that "81% expect greater use of AI and automation after succession."
But with technology comes risk. Thiessen said nearly one-third of family offices — or their family members — have experienced a cyberattack. Some smaller offices still lack formal cybersecurity protections, which makes training and infrastructure investments increasingly important.
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A New Approach to Investing and Philanthropy
Family office portfolios are now almost evenly divided between traditional investments and alternatives, such as private equity and real estate. Private equity alone makes up 43% of alternative holdings, according to Thiessen.
Philanthropy is also gaining momentum. The study reports that more than half of offices expect charitable giving to become more central after succession, and many support their missions through private foundations or donor-advised funds.
What the Next Decade Looks Like
Looking ahead, Thiessen told Benzinga that tomorrow's family office will be tech-enabled, purpose-driven, and deeply focused on long-term stability. Governance and cybersecurity will remain essential, while AI-powered analytics will help families make faster, more informed decisions.
These changes suggest that even as wealth shifts between generations, the $3 trillion family-office ecosystem will continue to grow in influence — quietly shaping markets, investments, and philanthropy for years to come.
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