A striking revelation from J.P. Morgan's 2026 Global Family Office Report demands attention: ultra-high-net-worth families are spending an average of **$6.6 million per year** to operate a single-family office managing assets exceeding $1 billion.
The study, which surveyed 333 single-family offices across 30 countries (with an average net worth of $1.6 billion), uncovered several telling patterns about how the world's wealthiest families structure their financial operations:
* **80%** outsource at least one component of portfolio management
* **One-third** of offices managing $1B+ delegate more than half of their investment portfolio to external partners
* **Most frequently outsourced functions**: legal services (52%), trading execution (45%), and cybersecurity (38%)
* **External services account for 25–28%** of total operating expenses
These figures point to a clear reality: even the most well-resourced family offices often lack critical capabilities in-house. Families are investing millions to build and sustain infrastructure that still doesn't cover every facet of their complex financial lives.
A Real-World Example: When Outsourcing Makes Sense
Recently, a family with a $2 billion net worth approached Whittier Trust seeking alternatives. They were spending approximately **$2 million annually** to run their independent family office—covering salaries, benefits, office space, insurance, technology, and overhead. While their setup functioned adequately, they recognized gaps in technology, process efficiency, and execution quality.
After a thorough assessment, Whittier proposed a solution: manage the family's entire office function within a multifamily office structure—at **less than half the current cost**. For this family, transitioning meant potential annual savings of 50% or more, without compromising service quality or strategic oversight.
This isn't a universal prescription. For families with net worth significantly above $2 billion and exceptionally complex holdings, maintaining a dedicated single-family office may still offer operational or tax advantages. But for many, the economics warrant a closer look at alternatives.
What Sets a Strong Multifamily Office Apart
The multifamily office sector is expanding rapidly, with numerous firms repositioning themselves to capture this growing demand. However, not all providers are built alike.
Whittier Trust's foundation as a single-family office—dating back nine decades—provides an institutional depth specifically calibrated for ultra-high-net-worth complexities. When the firm opened its services to multiple families in 1989, it did so by building scalable efficiencies without diluting its service ethos. Today, it supports multigenerational families, many of whom have been clients for decades.
By contrast, newer entrants to the multifamily space may lack the infrastructure to support long-term, complex wealth needs—including:
* Trust and estate administration
* Integrated investment management
* Cross-jurisdictional tax coordination
* Real estate and alternative asset oversight
* Consolidated reporting across entities
* Philanthropic strategy and execution
A distinguishing hallmark of firms with authentic family-office heritage is a service culture refined through decades of direct family partnership. Clients can reach their dedicated adviser directly and receive timely, personalized support. In an industry where scalability sometimes overshadows service, accessibility remains rare—and valuable.
A thoughtfully designed multifamily office is inherently flexible. It can serve families with $50 million to $1 billion in assets who have some internal coordination but need institutional-grade infrastructure. It also offers a compelling solution for attorneys and CPAs whose client families have outgrown their existing support structures.
Planning for the Next Chapter
Many families eventually recognize they don't need a full in-house team. A capable multifamily office can deliver comprehensive support at a significantly lower cost. Some choose a hybrid approach: bringing in external expertise while retaining their existing office, allowing for collaboration and a gradual evaluation of fit.
Another powerful advantage of the multifamily model is continuity across generations. Succession planning is a frequent catalyst for transition—a point reinforced by the J.P. Morgan report, which notes that **86% of family offices lack a formal succession plan** for key leadership roles.
Proactive engagement with the next generation is essential. In a strong multifamily structure, each family member can work with a dedicated adviser who understands their individual aspirations while aligning them with the family's broader strategy. This intentional coordination helps ensure a seamless transfer of knowledge, values, and responsibility.
No two families are identical, and there's no single "right" structure for managing significant wealth. But with specialized services available through a multifamily office at a fraction of the cost of a standalone operation, the model deserves serious consideration. For many ultra-high-net-worth families, it represents a strategic path to preserve wealth, enhance service, and future-proof their legacy—without compromise.