Family office succession planning: preparing the next generation of leaders

Amid what could be the largest wealth transfer in history¹, family offices face a critical task: preparing younger family members for the responsibilities – and legacy – they will inherit. 

For the next generation to step into family office leadership roles, succession should be understood as a gradual process rather than a single handover event. New financial and decision-making responsibilities can weigh heavily without early, detailed succession planning.

Family offices should proactively shape the education and participation opportunities afforded to the emerging generation, says Antonio Risorto, Head of Wealth Planning for Europe at Deutsche Bank Private Bank. Robust governance and properly documented processes support this, helping to define how decisions are made, responsibilities are shared and continuity is maintained over time.

“A strong governance framework for managing wealth allows for an orderly transition,” says Risorto. “Succession isn’t a single moment tied to the founder’s death or incapacity. It’s about continuous transition. Successful families recognise that and give future generations a lifetime of education and engagement.”

Treating succession as an ongoing commitment creates clarity and continuity. Without this approach, a lack of structure could lead to frictions.

What is the cost of poor family office succession planning?

Research shows that only around 30 percent of family businesses successfully transition to the second generation². The same vulnerabilities can surface in family offices when key knowledge isn’t properly recorded or shared.

“Unfortunately, many families come to succession ‘blind’ because key information was stored in the founder’s head without being fully documented,” says Risorto. “That’s where fragmentation and distrust can begin to emerge.”

Once uncertainty takes hold, it becomes harder to maintain alignment across different branches of the family. Even if siblings remain aligned, extended family members such as cousins might hold different views. “Conflict may follow,” adds Risorto. “And that risks eroding family wealth.”

Taking the necessary steps to establish well-defined succession governance reduces uncertainty and provides a framework to set expectations.

How to develop next‑gen leadership in family offices

The next generation of family office leaders benefits from a gradual increase in responsibility. In a recent Deloitte Private survey, 61 percent of family businesses reported at least one next‑gen member interested in becoming CEO, yet only 23 percent viewed those individuals as ready to assume the role in the near term³. 

Early exposure to the family office’s culture and workings provides benefits that are difficult to quantify. Over time, younger family members must be supported in acquiring not only financial literacy but also a strong understanding of strategic decision-making and stewardship responsibilities in order to support longevity.

“You need a process that allows experience and capability to build progressively,” says Risorto. “The younger generation feel more empowered when they have a voice and their views are respected.”

Philanthropy can play a practical role, enabling young family members to enhance their real-world skills through involvement with issues they care about. “They need to feel trusted with responsibility, provided it remains commensurate with their experience,” says Risorto. “Some acquire knowledge faster than others, so the level of engagement needs to be adjusted for each individual.”

Tailoring the pace of involvement ensures development feels supportive rather than overwhelming. Communities such as Deutsche Bank’s NextGen Programme offer opportunities for structured learning and networking with peers. 

Why next-generation leaders need soft skills and cybersecurity awareness

In our view, technical competence alone is no longer sufficient. The modern landscape requires a broader skillset that blends financial grounding with interpersonal judgement, reputational awareness and an understanding of digital risks which, by their very nature, are ever-evolving.

“Next-gen education programmes historically focused on financial skills,” says Risorto. “They now include soft skills, such as managing family dynamics. Impact and ESG investing, geopolitics and cybersecurity have also grown in importance.” 

Balancing the development of next‑generation authority with operational integrity is a delicate task. Independent professionals can help assess capability and guide learning. As families broaden the scope of succession preparation, the question becomes how to embed these new competencies for the long term. 

How mentorship supports family office legacy and continuity

A new generation of family office leaders will face distinct challenges. By taking the initiative early, families can use mentorship to pass on the values and culture that underpin their legacy.

As emerging leaders gain room to test their ideas and learn from experience, families may become better equipped to preserve capital and cohesion through generational transition.

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