Reviewing a multifamily office every year: costs, coordination, how to leave

An annual review of a multifamily office compares the services a family receives with the costs, responsibilities and terms of the relationship. It also creates a record of what needs to change and what a transition would involve if the family decides to leave.

Compare the agreement with the work delivered

A multifamily office provides services to several families. Its role may include investment oversight, reporting and tax coordination. Estate planning coordination, philanthropy and household administration may also be part of the work. Each family's engagement agreement defines the actual scope.

The review can start with that agreement and a list of work completed during the year. Compare promised deliverables with reports, meetings, completed projects and unresolved requests. Separate recurring services from occasional projects so that a quiet year does not obscure work that remains available under the contract.

Fit can change as family circumstances change. A business sale, a generation transition or a departure from the office's team may alter the support required. Family Office Club research points to these events as reasons to revisit an arrangement. A useful review records current needs and names the person responsible for each follow-up.

Make the full cost visible

Richard Wilson of Family Office Club says charges vary with the services provided. Concierge, philanthropic and legal work may carry extra charges. A headline fee therefore needs to be read alongside the service schedule and actual invoices.

The review can distinguish the office's own charges from amounts paid to investment managers and custodians. Payments to outside professionals can be listed separately. This helps explain total spending without assuming every expense is controlled by the multifamily office. It also makes changes in scope easier to discuss.

• Identify the fee basis, such as a flat fee, retainer or percentage of assets under management.
• Compare billed amounts with the agreement and any approved changes.
• Record services billed separately and work charged by outside providers.
• Explain changes caused by asset values, added services or revised pricing.

Cost alone does not describe value. The discussion can cover completed work and reporting quality. Responsiveness and the family's remaining administrative burden also matter. These observations give the fee discussion a concrete basis.

Check coordination, accountability and conflicts

A family may retain its own accountant, attorney and insurance professional alongside an MFO. Investment managers may work alongside them as well. Coordination means those parties understand their responsibilities and exchange the information needed to complete their work. It does not mean every provider has the same authority or professional duties.

A responsibility list can show who gathers documents, approves instructions, tracks deadlines and resolves conflicting information. Review delays and duplicated work against that list. An unresolved tax document or an unanswered request is easier to address when ownership is clear.

Conflicts and duties also deserve attention. A family should not infer the terms of its relationship from the label "family office." The annual discussion can document which entity provides each service, how it is paid and what the agreement says about its obligations.

Product compensation and commissions belong in this discussion. Relationships with outside providers also merit review. Disclosures can be compared with the services and products actually used.

Review reporting and access to information

Reports should help a family understand its assets and liabilities. Spending and outstanding decisions also belong in the picture. Review whether information arrives when expected, whether different reports agree and whether missing data is clearly identified. A polished presentation can still leave practical gaps.

For an annual review, the practical issue is whether family members and authorized professionals can obtain usable information when needed.

• List the records held by the office and the systems used to access them.
• Identify who can view information and who can authorize transactions.
• Check whether reports and underlying records can be exported.
• Record how access changes after a staff departure or a change in family responsibilities.

Understand how an exit would work

Understanding an exit process does not require a decision to leave. It makes the relationship's terms clearer. The starting point is the agreement, including notice requirements, final billing, termination charges if applicable and provisions covering records.

Ending an advisory relationship may involve several separate tasks. Investments may remain with a custodian, some assets may have transfer restrictions and outside professionals may continue their engagements. These arrangements need to be identified individually.

A transition record can list accounts, pending transactions and upcoming deadlines. Recurring payments and open projects can be listed too. It can also identify who will receive records and who will take responsibility for unfinished work. Access permissions and transaction authority need explicit handling.

The annual review can end with a written record of agreed changes, responsible people and completion dates. This page provides education only. Contract interpretation and individual legal, tax or investment decisions require the relevant professional context.

FAQs

Does an annual review require changing providers?

No. It can confirm that the arrangement still fits or identify changes to scope, reporting and responsibilities within the existing relationship.

Is there a standard multifamily office fee?

Comparing costs requires knowing what the quoted fee includes and what is billed separately.

Can every asset move when a family leaves?

That depends on custody arrangements, investment terms and transfer restrictions. Ending the office's engagement and moving assets are separate processes that may have different requirements.

Sources

• Family Office Club research database
• Family Office Club research database
• Family Office Club research database
• Family Office Club research database
• Family Office Club research database

Related: all guides, the directory, calculators. For events and peer access, see FamilyOffices.com.