Family offices are undergoing a profound transformation. No longer simply custodians of private wealth, they are evolving into multi-functional hubs that must prepare heirs for leadership, reconcile generational differences, and manage increasingly complex cross-border structures.

Joan Johnson, managing director of Praxis BVI, outlines how families are adapting their structures, governance, and investment strategies to safeguard legacies while embracing change.

She brings over 20 years of financial services experience to her leadership of the local trust and corporate services team, with deep expertise in structuring, governance, and cross-border trust management.

Preparing for succession

For most families, preparing for intergenerational transfer starts with two pillars.

‘Effective structuring to ensure assets are protected, tax-efficient, and capable of supporting the family’s long-term objectives,’ explains Johnson. ‘This often involves using of trusts, holding companies or foundations across multiple jurisdictions.’

The second pillar is education and engagement. ‘Families need to prepare the next generation not only to inherit capital but also to assume leadership with a clear understanding of the family’s values, purpose and responsibilities,’ she says.

Crucially, Johnson stresses that succession is not an event but a journey. Financial literacy programmes, exposure to governance processes, and opportunities for younger family members to participate in investment or philanthropic decision-making all contribute to smoother transitions, and stronger intergenerational cohesion.

Generational dynamics

Transitions, however, are rarely seamless. ‘Generational transition often brings tension between preserving legacy and embracing change,’ says Johnson. She highlights two areas where friction is most common: alignment of values and the pace of change.

She continues to explain how: ‘Younger generations may prioritise ESG, venture investing or social entrepreneurship, while older family members may favour more traditional asset classes and risk profiles.’ At the same time, NextGen members often push for faster adoption of digital tools or organisational change, which can appear disruptive to older family members.

These differences, Johnson adds, are partly generational. ‘Baby boomers tend to prioritise stability, while younger generations expect purpose and seek active participation in financial decisions. These different expectations and priorities require careful alignment of strategies to ensure families remain unified around long-term goals.’

Family offices are uniquely positioned to mediate such dynamics, providing forums for structured dialogue and ensuring that decisions reflect perspectives across generations.

Models of operation

The diversity of family offices means there is no ‘one size fits all’ structure. Larger, institutional-style offices mirror professional investment houses, with in-house teams, governance frameworks and comprehensive reporting systems. They benefit from economies of scale and greater control.

By contrast, smaller or younger offices often prioritise agility and personalisation. ‘These families may prefer to outsource investment management, legal or fiduciary functions to trusted advisers, retaining a focus on strategy and values alignment,’ Johnson explains.

Choosing between a single-family office, a multi-family office, or a hybrid model requires weighing scale, complexity, and privacy needs. Johnson outlines the trade-offs: ‘Single family offices offer maximum confidentiality and customisation but require significant capital and governance discipline. Multi-family offices are more cost-effective and offer access to high calibre professionals without the full operational burden. Hybrid models allow families to internalise strategic leadership while outsourcing execution to specialist partners.’

Whatever the model, structures must remain flexible enough to evolve with family dynamics and regulatory changes.

Governance and trust

If there is one constant in the family office landscape, it is governance. ‘Governance is foundational; without it, even the best-structured family office risks fragmentation,’ says Johnson.

Good governance frameworks typically include clear roles and responsibilities, regular and transparent communication through assemblies or board meetings, and mechanisms for conflict resolution.

Families vary in how they formalise governance, whether through external boards, family councils, or charters, but the essential requirement is alignment with culture and clarity of process.

Professional advisers also play a crucial role. ‘The most successful family offices respect both professional and family perspectives,’ remarks Johnson. External advisers bring objectivity and discipline, while family members contribute vision and values.

But trust is not always automatic. ‘It is not unusual for trust is to be lacking within families, making it essential to deliberately build a circle of trust among members,’ Johnson notes.

Open conversations about money, including its emotional and psychological dimensions, are critical to preparing heirs for responsibility. Without a clear understanding of why wealth is managed in a particular way, the next generation may struggle to engage with the mechanics of wealth management.

Education as stewardship

Education is emerging as a core function of family offices. Increasingly, offices run structured NextGen development programmes that combine technical training in financial markets and legal structures with soft skills in leadership, negotiation and public speaking.

‘Others encourage participation in board meetings, investment committees, or philanthropic initiatives, providing exposure to the responsibilities of stewardship,’ says Johnson. Some offices even sponsor placements or partnerships with external institutions to broaden perspectives.

The ultimate goal, Johnson emphasises, is to cultivate heirs who are active contributors to the family’s legacy and impact, rather than passive recipients of wealth.

Emerging trends

Looking ahead, Johnson sees three structural trends reshaping family offices.

First is technology integration. ‘Offices increasingly invest in digital platforms for consolidated reporting, risk analytics and secure communication. AI and automation are further streamlining decision-making and operational efficiency.’

Second is the rise of sustainability and impact investing, a reflection of NextGen priorities. ‘This is reframing not just what families invest in, but how they define success,’ Johnson observes.

Third is globalisation and regulatory complexity. With families and assets spanning multiple jurisdictions, cross-border tax planning, succession structuring, and cultural fluency are more critical than ever.

Central to all of these shifts is purpose. ‘Families are increasingly seeking to build with purpose, focusing on the legacy they drive into the future,’ says Johnson. Developing a clear sense of purpose through questions like why are you there, why are you going to invest helps ensure alignment and direction.

The BVI advantage

The British Virgin Islands has carved out a strong role in supporting family offices, thanks to its legal framework, cost efficiency and professional expertise.

‘The Virgin Islands Special Trusts Act (VISTA) allows trusts to hold shares in companies without imposing management obligations on trustees, making it particularly attractive for families with operating businesses,’ Johnson explains.

Moreover, Private Trust Company (PTC) regulations add flexibility by allowing families to create bespoke structures, while amendments to the Trustee Act provide advanced features such as protection from forced heirship, perpetuity periods of up to 360 years, and recognition of protector roles.

Local firms offer a full suite of services, from trust establishment and fiduciary administration to legal, tax, accounting and estate planning advice. The BVI also supports complex structures, including non-charitable purpose trusts and PTCs, which allow families to consolidate control.

Dispute resolution is another strength. With a dedicated Commercial Court, an International Arbitration Centre, and appeals to the Privy Council in London, families can rely on a respected and efficient legal system.

‘The BVI has established itself as a leading jurisdiction for family offices, trusts, and succession planning by combining modern legislation, professional expertise, and cost-effective services,’ Johnson points out. Its proposition remains aligned to the long-term needs of families seeking certainty, flexibility, and stability in an uncertain world.