Family office legacy planning: shaping purpose beyond capital

Family offices are redefining legacy beyond financial capital considerations, embedding shared values, purpose and long‑term intent into governance frameworks, investment decisions and intergenerational stewardship.

“From a financial perspective, a legacy can be built in one lifetime,” says Antonio Risorto, Head of Wealth Planning for Europe at Deutsche Bank Private Bank. “It might come from a liquidity event or even an inheritance. But, for family offices, a legacy built on values and purpose must span multiple generations.”

This distinction – between wealth created and wealth stewarded – is increasingly central for families seeking to avoid the familiar pitfalls of disengagement, competing priorities and conflict.

“Shaping a legacy beyond capital – and defining what a family office stands for in its contribution to society – can help maintain unity and preserve intergenerational wealth,” adds Risorto. “By asking ‘What is the purpose of our wealth?’ and ‘What responsibilities come with it?’ families can begin to understand the direction that feels right for them.”

From inheritance to identity: redefining family office legacy planning

For modern family offices, legacy planning encompasses governance structures, decision-making frameworks and the stewardship of financial, human and reputational capital across generations.

The 2020s have seen increased scrutiny of how family wealth shapes broader social and economic outcomes. This shift is reflected in the rise of impact investing, which channels capital into areas such as renewable energy, sustainable agriculture, microfinance and accessible healthcare[1].

For many ultra-high-net-worth families, particularly those preparing the next generation for leadership, the focus extends past financial capital to the development of human, intellectual and reputational capital.

“Family office perspectives are moving away from the traditional first‑generation focus on stabilising investments and preserving wealth,” says Risorto. “Future generations are thinking beyond what they will inherit to who they will become and how that will influence social outcomes.”

This shift places greater emphasis on establishing the foundations that underpin strategic decision‑making: shared values, clear governance and the education that enables next‑generation family members to participate confidently in key deliberations. “It means making sure family members engage with governance frameworks, educational programmes and next‑gen forums,” states Risorto.

Integrating purpose into decision-making: governance, risk and capital allocation

Embedding intent into the day‑to‑day work of a family office requires ensuring that guiding beliefs are reflected in investment policy, risk appetite and decision‑making structures. “The most effective family offices express their values through their actions, not just their aspirations,” says Risorto.

Families are adopting practical mechanisms – from investment frameworks to governance processes – to ensure their purpose is integrated into the stewardship of assets. These structures help prevent agreed norms from being diluted and ensure they are consistently applied by family office representatives.

In practice, this often involves aligning investment policy statements, risk appetite and governance structures with clearly articulated family values. These mechanisms help translate purpose into day-to-day decisions. They can guide capital allocation towards philanthropy, long-term goals, ESG and impact investing, as well as encouraging families to look further than financial measures of risk alone.

“Making this effective requires thinking in terms of reputational, geopolitical and regulatory risk,” adds Risorto. “Some family offices focus solely on investment return, with no clear delineation of responsibility across asset classes or geographies, and no structured dialogue about how core and satellite strategies align with the family ethos.”

Transparency is key. From clear operating structures to regular forums for communication between family members, maintaining a shared direction requires clarity.

“You need systems to manage the different types of risk, and you need everyone to have access to policies that are regularly updated,” says Risorto. “Flexibility is essential for family offices because geopolitical conditions change, as do family dynamics.”

How can family offices achieve intergenerational alignment?

Attitudes vary across age groups, with younger generations more interested in impact investing and more inclined to express their beliefs through philanthropy[2]. Families that create the most powerful non-financial legacies are able to maintain cohesion across generations despite often differing world views. This requires a structured approach to intergenerational wealth planning, combining family office governance, education and shared responsibility.

While some families view a family constitution as “just a piece of paper”, Risorto says it should be understood as much more than that. “A strong governance model should be the foundation for any family office.”

A family constitution typically defines a family’s values, governance principles and decision-making processes, acting as a reference point for long-term alignment.

“But that doesn’t mean it should be set in stone by the founder,” says Risorto. “A constitution needs to be a living, breathing document that acts as a vehicle for the family’s evolution.”

That evolution depends on knowledge transfer across generations. Alongside financial education, younger family members need support in learning how to interact with lawyers, accountants and wealth planners.

As more than a quarter of family offices now have multiple branches to manage increasingly global portfolios[3], there is a risk that multi‑jurisdictional wealth structures and cross-border family office operations could blur the founding identity.

“Family members may spread out across different geographies through going to university or pursuing business opportunities, and then start to be influenced by the culture in those jurisdictions,” says Risorto. A resilient oversight system, regular cross‑border dialogue and shared commitments are therefore essential to maintaining alignment.

“There's also a gravitation towards values-based education for younger generations that tends to emerge through philanthropy and impact investing strategies,” states Risorto. “Families see that as a testing ground that allows younger members to take some responsibility for the stewardship and future direction of family wealth.”

Investing in cohesion, navigating complexity

Families that achieve long-term continuity do so by maintaining cohesion and building capability, equipping each generation to navigate complexity. When identity, principles and governance align, the family office becomes a platform for sustaining purpose, governance and continuity across generations.

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