Succession in a Family Office

Preparing the Next Generation Before the Transition

Succession in a family office is often misunderstood as a single transition moment. In reality, it is a multi-year process that begins long before leadership or ownership changes hands.
A family office exists precisely to manage this transition with structure, continuity, and reduced emotional risk.

What Succession Means in a Family Office

Succession is not synonymous with inheritance.

• Inheritance refers to the transfer of assets

• Succession refers to the transfer of decision-making authority, responsibility, and leadership.

In most families, ownership and leadership do not — and should not — transition simultaneously.

Why Succession Fails More Often Than It Succeeds

Succession failures typically stem from structural, not personal, causes:

• Treating succession as a one-time event

• Delaying preparation until a triggering event occurs

• Lack of defined governance and decision rights

• Assuming family relationships substitute for systems

Without structure, even well-intentioned families experience conflict, paralysis, or capital erosion.

The Role of the Family Office in Succession

A family office provides:

• A neutral platform separating emotions from decisions

• Continuity independent of any one individual

• Institutional memory across generations

Its role is not to choose successors, but to create the conditions under which succession can occur smoothly.

Preparing the Next Generation

Effective preparation focuses on:

• Education over entitlement

• Exposure to governance before control

• Gradual assumption of responsibility

Readiness is measured by competence and judgment — not age or lineage.

Succession as a Continuous Process

Succession planning must be revisited regularly as:

• Family size and dynamics evolve

• Asset complexity increases

• Individual interests diverge

A resilient family office treats succession as a living process, not a static plan.