How to Structure a Family Office When the Heir Doesn’t Want to Run the Business
Published by Ryan Gollan / 14 Feb 2025
The Dilemma of Asian Wealth Creators
Having been trained in Singapore’s family office advisory world, I’ve had the privilege of learning from some of the most brilliant minds in wealth management, succession planning, and investment governance. I’ve also seen firsthand the success stories and failures of UHNW families across Asia. Beyond my professional insights, I’ve had the unique opportunity to be surrounded by friends from long-established generational families: those who have successfully built not just wealth, but a legacy grounded in values, vision, and a sense of responsibility that extends beyond their own lifetimes. These families remind me that true wealth isn’t just measured in financial terms, but in the ability to sustain purpose, unity, and impact across generations. However, a truly successful and enduring family business is one that not only preserves wealth but also empowers its members across generations to pursue their own aspirations and contributions - ensuring that each generation adds to the family’s legacy in a meaningful and evolving way.
What happens when the heir doesn’t want to run the family business?
One of the biggest challenges today!
For many Chinese and Asian UHNW families, this is a painful reality. Unlike in the West, where family businesses are often passed down with professionalised structures, Asian founders have traditionally expected their children to take over, lead, and expand their legacy.
But times have changed.
Today’s next-gen heirs, particularly those born after 1980 in China, Hong Kong, and Southeast Asia, have different career ambitions, global exposure, and personal aspirations. Some want to work in technology, venture capital, impact investing, or philanthropy. Others simply don’t want the pressure and responsibility of running a multi-million or multi-billion dollar empire.
The good news?
There’s a better way to manage wealth and legacy, one that ensures the business remains an asset, but without forcing the next-gen into a role they don’t want.
This is where the modern family office comes in.
Why a Family Office is the Best Solution for Wealth Continuity
A well-structured family office bridges the gap between a thriving business and an heir who doesn’t want to run it. Instead of forcing the next-gen into a CEO role, the family can retain ownership, professionalise management, and preserve wealth for future generations.
A family office provides:
Wealth protection & governance → Ensuring assets are managed professionally.
Business continuity → The company remains an asset, but with external leadership.
Flexibility for heirs → The next-gen can pursue their own careers while still being involved in legacy decisions.
Professionalised investment & philanthropy → Structured wealth growth beyond the core business.
Step 1: Define the Family’s Vision & Goals
Before structuring a family office, it’s crucial to clarify the family's long-term vision:
Does the family want to keep the business or eventually exit?
Will the heir have a passive or active role in wealth management?
What other investments should the family office focus on?
How will philanthropy and impact investing fit into the overall wealth strategy?
Some families want to keep the business but hand daily operations to professional managers, while others prefer to diversify into real estate, private equity, and venture capital. These decisions will shape the type of family office structure needed.
Step 2: Choose the Right Family Office Model
There are three primary models of family offices, each with different levels of control and professional management:
1. Single Family Office (SFO) → Best for Wealth Preservation & Legacy Control
For UHNW families with over $200M+ in assets, an SFO is the most customized and private structure.
Who runs it? A dedicated CIO (Chief Investment Officer) or family office CEO who manages the family’s wealth, investments, estate planning, and philanthropy.
Who owns it? The family still owns the business, but day-to-day operations are handled by external CEOs and professional boards.
How does the heir fit in? They can serve as a board member, investment advisor, or foundation head, while focusing on their own interests.
Example: A billionaire family in Hong Kong keeps their real estate empire intact but runs it through an SFO, where the heir is involved only in investment decisions, while professional executives handle daily operations.
2. Multi-Family Office (MFO) → Best for Families Wanting Professional Management Without the Hassle
For families who don’t want the complexity of running an SFO, an MFO pools resources with other UHNW families for professional management.
Who runs it? A specialised family office service firm that handles investments, trusts, governance, and tax planning for multiple families.
Who owns it? The family retains ownership of the business or assets but outsources all financial and legal management.
How does the heir fit in? They simply approve high-level decisions but don’t have to run the business or wealth management.
Example: A Chinese family with a logistics empire partners with an MFO in Singapore to manage all non-business investments, while the heir focuses on impact investing.
3. Virtual Family Office (VFO) → Best for Lean, Flexible Wealth Management
For smaller UHNW families who don’t need full-time staff, a VFO operates on an outsourced model with a network of financial, legal, and investment advisors.
Who runs it? A team of external experts: private banks, investment advisors, and lawyers, managing wealth without a dedicated office.
Who owns it? The family still controls all assets, but they outsource financial strategy and operations.
How does the heir fit in? They only engage in select decision-making, such as philanthropy or venture investments.
Example: A Singapore-based UHNW family uses a VFO model to manage their global property portfolio, allowing the next-gen heir to focus on their own career.
Step 3: Professionalise Business & Investment Management
To ensure wealth continuity, family offices must:
✅ Appoint Professional CEOs & Board Members → Business operations should be led by industry experts, not just family members.
✅ Implement a Strong Governance Framework → A family constitution and advisory board ensure structured decision-making.
✅ Diversify Investments Beyond the Family Business → Real estate, private equity, and tech investments can future-proof wealth.
One of my mentors in Singapore always emphasised:
"A family office isn’t just about preserving wealth ~ it’s about future-proofing it for generations."
Step 4: Engage the Heir in a Meaningful Role
Even if the heir doesn’t want to run the business, they can still play a valuable role in the family office, such as:
Sitting on the investment committee → Overseeing growth strategies without daily management.
Leading the family foundation → Engaging in philanthropy and ESG initiatives.
Managing impact investing & venture capital → Aligning wealth with personal interests.
This way, they stay connected to the family's wealth without feeling trapped.
Final Thought: Wealth Stewardship, Not Just Inheritance
In today’s world, being born into wealth no longer means inheriting a business.
The most successful UHNW families in Asia have realised that the goal isn’t just succession, it’s continuity, flexibility, and smart governance.
A well-structured family office ensures that wealth is protected, businesses remain strong, and heirs are free to pursue their own paths, without losing the family’s legacy.
🔹 If you would like to enquire about setting up a SFO or MFO, please feel free to get in touch.
