Questions to ask a multifamily office

Choosing a multifamily office starts with understanding who will do the work, how the office gets paid, and what responsibilities it accepts. These questions help families compare services, costs, accountability, and access to their own information.

What services are included, and who delivers them?

A multifamily office provides services to multiple families. Its work may include investment management, coordination with tax and estate professionals, philanthropy, bill payment, and family education. The label alone does not establish which services a particular office provides.

Begin with a written description of the proposed relationship. Separate work performed by employees from work assigned to outside providers. Identify who coordinates those providers and who checks that tasks are completed.

• Which services are included in the engagement?
• Which services require a separate agreement or payment?
• Who will be the family's regular contact?
• How does the office work with existing accountants, attorneys, and other advisers?

Ask how responsibilities change after a business sale, a death, or a generational transition. A service list becomes easier to assess when the office explains how it would handle a concrete situation.

How are fees calculated, and what costs sit outside them?

Richard Wilson of Family Office Club says charges vary with the services provided. Concierge, philanthropic, legal, and fund work may carry extra charges. A quoted management fee therefore needs a clear description of what it covers.

Ask whether pricing uses assets under management, a flat fee, a retainer, performance, or a combination. Request an explanation of how the bill changes when assets move, services expand, or an engagement ends.

• Which assets count toward the fee calculation?
• Are outside manager, fund, custody, and transaction costs separate?
• Does the office receive compensation from anyone besides the family?
• How are additional services approved and billed?

A sample invoice can make the explanation concrete. Ask the office to distinguish its own charges from costs paid to other providers, and to identify any expenses it cannot estimate in advance.

What duties does the office accept, and where are the conflicts?

Do not assume that every service carries a fiduciary duty. Family Office Club research indicate that engagement terms can disclaim that duty. Ask the office to identify the legal entity providing each service and explain its obligations in writing.

A fiduciary duty generally involves acting in the client's interests within the applicable relationship. Its precise scope depends on the governing rules and agreement. Ask whether the office accepts ongoing monitoring responsibilities, what it monitors, and when those responsibilities end.

Conflicts deserve a separate discussion. Ask about commissions, referral payments, affiliated funds, and compensation connected to particular products. Request an explanation of how these arrangements affect recommendations and how conflicts are disclosed and managed.

Registration and contractual duties are separate questions. Ask which entity holds any stated registration and which entity signs the agreement. The answers should make responsibility understandable across the relationship.

How will reporting, data access, and privacy work?

Ask to see an anonymized sample report. It can show whether the office presents investments, liabilities, fees, and cash movements in a form the family can understand. Clarify which assets appear and which require information from outside providers.

• How often are reports updated, and where can valuations be delayed?
• Can family members and authorized advisers receive different access permissions?
• Can the family download its records in a usable format?
• How are sensitive documents shared and access removed?

Discuss who can view information, how payment instructions are checked, and what happens after a suspected security incident. Ask who handles corrections when a report contains missing or inaccurate data.

Data access also matters when the relationship ends. Establish what records the family receives, how they are transferred, and whether transfer or continued access carries a charge.

How will the relationship be reviewed, and how can it end?

Firm size does not explain whether a service fits a family's needs. Discuss the work expected, the people responsible, and how the family and office will assess delivery. Include communication arrangements and procedures for unresolved concerns.

Investment capabilities need specific questions too. Richard Wilson of Family Office Club says most multifamily offices offer limited support for direct deals. Families interested in those investments can ask who evaluates opportunities, performs due diligence, and monitors holdings.

Request an explanation of notice periods, termination charges, asset transfer procedures, and support during a handover. These terms help define the practical relationship from the beginning.

FAQs

Is there a standard multifamily office fee?

No. Richard Wilson of Family Office Club says fees vary by service. Comparing proposals requires examining both the calculation method and the work included.

Does every multifamily office act as a fiduciary?

No. Engagement terms may disclaim fiduciary duty. Ask which duties apply to each service and where those duties appear in the agreement.

What can families request before signing?

Useful materials include a written service scope, fee explanation, conflict disclosures, sample report, data access terms, and termination provisions.

Sources

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

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