By: Dr. Tamara Patzer
In brief: Family offices are often described as the mark of serious wealth, but the decision is more practical than glamorous. A New Orleans tax attorney who wrote a book on the subject explains what a family office does, who tends to need one, and what a high-profile household can do first, using current national wealth data.
The phrase sounds like a status symbol. In practice, a family office is a working arrangement: people and systems that look after a family’s money, taxes, legal affairs and records in one coordinated way. Whether a household needs one is a practical decision, and for many high-profile families the honest answer is not yet. Todd M. Villarrubia, a New Orleans attorney who focuses on tax and estate planning, wrote Entrepreneurial B.E.A.S.T. Mode™ in part to answer that question. This piece walks through his reasoning.
What is a family office, exactly?
The book gives a compact definition: “The family office manages the financial and personal affairs of a wealthy family across generations.” It also offers a picture of how one works. “Imagine a team of experts, each specializing in a crucial area: taxes, law, investments, insurance, and business strategy.” The point is the team, working together and not separately.
Villarrubia is careful to say what a family office is not. It is not simply a wealth manager with a grander name. In his words, “While similar to wealth management firms, family offices place a greater emphasis on personalized, long-term goals and legacy.” The distinction is about focus: the family’s own goals across generations, and not only the performance of a portfolio.
Does a household need to be at a certain wealth level?
Not exactly, though money matters. The book says, “The decision to establish a family office isn’t solely about wealth level, although economics are a factor.” Complexity counts as much as size. A household with several businesses, properties in more than one state, a public profile, a blended family and an eye on the next generation has plenty to coordinate, even at a smaller scale than the headlines suggest.
For context on the scale of wealth in the country, the Federal Reserve’s accounts show about $60.3 trillion of net worth held by the top 1% in the second quarter of 20262. The Tax Foundation found that a filer needed about $676,000 of adjusted gross income to reach the top 1% of earners in tax year 20233. Those figures describe the broad group from which family offices tend to come. They do not say who needs one.
Is there an easier way to put the question?
Yes. Ask whether anyone is currently responsible for the whole picture. Does a single person or team know every entity, every account, every document and every adviser? Do the lawyer, the tax professional and the investment adviser talk to one another? Could a trusted person step in tomorrow and find what they need?
If the answer to all three is no, the household has the problem a family office solves, whether or not it ever builds one. The book sums up why: “The answer lies in establishing a family office, which not only manages assets but also simplifies complexity.” Simplicity is the goal, and a large office is only one way to reach it.
What if a full office is too much?
Then do not build one. The book is clear: “Not every family requires a full-service family office.” A household can capture much of the benefit with a smaller version. That might be a lead attorney who coordinates the others, a standing quarterly meeting of advisers, a shared document that lists entities and accounts, and a named person who keeps it current.
A high-profile household should add one more piece, which is privacy handled sensibly. Staff, assistants and outside vendors often see more than the family realizes. Clear rules about who has access to what protect the family without turning the arrangement into a secret.
What does it cost, and how does a family judge it?
Costs vary widely, and no figure here would be reliable. The honest test is a comparison. What does disorder cost the family now: missed deadlines, duplicated fees, tax surprises, disputes, slow decisions? And what would a coordinated arrangement cost? If the first number is larger, the case is made. If not, a lighter structure is probably enough.
Schwab’s 2025 Modern Wealth Survey, which asked 2,000 adults, found that people put the cost of being financially comfortable at an average of $839,000 and the cost of being wealthy at $2.3 million4. Those are opinions about what wealth takes, not prices for planning. They are a reminder that a family should decide what enough means for itself before deciding what structure to build.
Why do some families build one anyway?
For the reason the book keeps returning to: the next generation. Cerulli Associates expects $124 trillion to pass between U.S. generations through 2048, with $105 trillion going to heirs and $18 trillion to charity1. Families that want their share to keep its meaning face a question about governance and values, not only taxes.
Villarrubia puts the broader purpose this way: “Family offices aren’t a luxury; they are the infrastructure necessary to guide wealth through generations, ensuring growth while maintaining family unity.” Whether a family agrees with that or prefers a lighter touch, the sentence names the real test. Does the arrangement help the family stay together and stay clear about what it wants?
What should a household do first?
Take three steps before deciding anything.
- Write a one-page map of entities, accounts, documents and advisers.
- Hold one meeting at which the lawyer, the tax professional and the financial adviser sit together.
- Ask each adviser how they would handle a crisis, such as an illness, a claim or a sudden sale.
If those three steps feel easy, a light structure is likely enough. If they reveal confusion, the household may be ready to consider more.
Common questions
Is a family office only for celebrities? No. The book treats it as a tool for families with complex affairs, famous or not.
Can I build one gradually? Yes. Many families begin with coordination and add staff and systems as needs grow.
Who should I ask first? A licensed attorney who works with families on tax and estate matters is a sensible starting point.
Sources
- NAPA-Net, Wealth Transfers Expected to Hit $124 Trillion Through 2048 (reporting Cerulli)
- Federal Reserve Distributional Financial Accounts, Net Worth Held by the Top 1% (FRED)
- Tax Foundation, Who Pays Federal Income Taxes? Tax Year 2023
- Charles Schwab, 2025 Modern Wealth Survey (Business Wire)
About the author. Dr. Tamara Patzer is a publisher and former newspaper editor. She was on the staff of The Charlotte Sun when it was named a 2005 Pulitzer Prize finalist for its Hurricane Charley coverage.
About the source. Todd M. Villarrubia is an attorney with an LL.M. in Taxation and a Juris Doctorate. He is an Accredited Estate Planner, a Board Certified Expert in Estate Planning and Administration, and a Fiduciary Investment Advisor Representative. He is the author of Entrepreneurial B.E.A.S.T. Mode™. Wealth Planning Law Group, 101 W. Robert E. Lee Blvd., Ste 404, New Orleans, LA 70124. Phone: 504-982-8207; email: todd@lawealthplan.com; website: https://lawealthplan.com/?utm_source=newsanchored&utm_medium=celebrity-news&utm_campaign=top-1pct
Disclaimer: Sponsored feature written on behalf of Todd M. Villarrubia. This article is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. Results vary.
