What the first family office setup meeting should cover
Built on Chapter 6 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.
The first setup meeting should establish what the family needs handled and who can authorize the work. It should end with a short assignment list. A long presentation about everything a family office could do leaves the founder with another set of possibilities to sort through.
Chapter 6 starts with listening and needs assessment before building the team. That order is useful for billionaire families because wealth can hide a basic disagreement about what the office is supposed to accomplish. One person may want better reporting while another expects staff to manage a different branch's personal affairs.
Begin with what is going wrong
Ask the family which tasks are falling through the cracks. A missing report is a different problem from a distribution dispute. A founder receiving every invoice has a different staffing need from a founder who receives conflicting recommendations from several advisors.
Keep those answers in the family's language. If someone says they cannot tell how much cash is available, record that question before translating it into a software requirement. The office needs to solve the information problem; purchasing software may or may not be part of the answer.
Richard's starting point for family values
In my recorded explanation of a family-values tool, I ask people to tell the story of how they built their wealth. They can describe their businesses, supply their own recorded material, and correct the proposed values before discussing them with a spouse or family. Those are the actual steps I describe.
I would bring the same listening sequence into the first setup meeting. Ask what the family built and what it wants to preserve. Let the family correct the advisor's interpretation. That conversation can identify a purpose for the office without pretending the advisor already understands the household from its asset list.
Draw the people before assigning the roles
The book recommends a visual family tree. Use it to identify the generations and relationships the office may serve. Then distinguish those people from the legal owners and authorized decision makers for particular assets.
A person can be important to the family without having authority over a trust or company. An advisor should know whom to include in a values discussion and whom to ask for a binding instruction. Have the appropriate professionals confirm any authority the meeting participants cannot establish.
Map the advisors already doing the work
Ask who handles tax, legal work, custody, insurance, and day-to-day administration. Record the person actually responsible at each firm. A company name alone is not enough when an urgent document is missing.
Find the handoffs. Does the accountant receive ownership changes from counsel? Who tells the insurer when the family acquires a property? Which person reconciles information that arrives in different formats? Mark unanswered questions as assignments with an owner, rather than settling them through an assumption in the meeting.
Find the obligations that cannot wait
Bring a schedule of known payment deadlines and requests awaiting a signature. The first meeting may uncover a problem that needs immediate attention from a qualified professional. Give it a separate route so the setup project does not distract from the obligation.
Keep investment proposals out of this part of the discussion unless they create an existing commitment or urgent decision. A sale pitch can consume the entire meeting. The family first needs a view of the obligations and authority it already has.
Agree on access before collecting everything
Decide where records will be kept and who may see them. A family tree, personal tax return, and investment report do not necessarily belong in the same folder with the same permissions. Ask the office lead to establish a suitable collection process with the relevant specialists.
Request the smallest useful document package for the next task. Sending every personal record to every prospective advisor creates work and exposes information without advancing the setup. Explain why each requested file is needed and who will receive it.
Leave with a decision record
Record what the family agreed, what remains unresolved, and who will bring back each answer. Circulate that account to the appropriate participants. If an advisor has misunderstood an instruction, the family can correct it before anyone acts.
Schedule the next meeting around the decisions those assignments will make possible. The first meeting has done its job when the next piece of work is clear enough for someone to finish.
What to take from this
- Start with the work the family needs fixed.
- Distinguish family participation from legal authority.
- Leave with assigned questions and a controlled document request.
This page is general information, not legal advice. Family governance documents and dispute processes should be reviewed by a qualified attorney.
Questions and answers
Should the first meeting choose all the investments? The first priority is to establish needs, existing obligations, and decision authority.
Does every relative attend every setup discussion? Attendance should fit the subject, confidentiality requirements, and relevant authority.