Rede ningthe Modern FamilyO cewith Michael Hoover
Withtheconfluenceofuncertaintyintaxes,theriseofsophisticated investments,andthetransferofwealthfromonegenerationtothenext,anew breedofadvisorsisstealthilyreshapinghowthewealthiestfamiliesinAmerica thinkaboutmoney,legacy,andtheirsenseofresponsibility
WealthisShiftingHands—andsoisitsManagement
MichaelHooverwakesupinthePhiladelphiasuburbsonadailybasistothe worldofthemodern-dayadvisor:notasinglebalancesheetbutatapestryof interlockingparts.Truststhatstretchbackdecades.Familiesandinvestments withcomplicatedincomeandwealthtransfertaximplications.Charitable objectivesdrivenbyfamilyvaluesandworldeconomics.And,notinfrequently, familyrelationshipsthatcanmuddyeventhesimplestoftechnicalsolutions.
Hoover,aCPAandFamilyOfficeCounseloratRockefellerCapitalManagement, findshimselfatthecrossroadsofthesechanges.Theworkhedoesrepresentsa largertrendthatisoccurringintheworldofwealthmanagement,andthatis changingtherarefiedworldofthefamilyofficeintoacentraloperatingsystem forAmerica’swealthiestfamilies.
Thisisnotanevolutionaryprocessthatisoccurringinreactiontoaparticular regulatoryeventoreconomiccycle.Rather,itisamovementthatisbeingfueled byaseriesofconvergingfactors:thegreatestwealthtransferinhistory,the increasinglyuncertaintaxenvironmentfacingtheindustryin2026,andthe revolutionaryimpactofprivateequityontheadvisoryindustry
“Butthetechnicalworkisstillimportant,”Hooverexplains.“Familiesarenow posingbiggerquestions.Theywanttoknowhowcurrentdecisionswillimpact theirkids,theirphilanthropy,andthefutureidentityoftheirfamilyinthirty years.”
TheFamilyOfficeModel:WhyIt’sHavingaMoment,andWhyItWon’t GoAway
Forseveraldecades,familyofficeshavebeenconsideredboutiqueorganizations, orprivatelytailoredoperations,fordynasticwealthwithnine-figure+balance sheets.Butthatviewnolongerapplies.
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AsestimatedbyCerulliAssociates,thereisanimminent$84trillionwealth transferinAmericaby2045.Mostofthismoneyisinfamiliesthathave accumulatedtheirfortunesinthepastthirtyyearsthroughentrepreneurship, privateequity,andequitycompensation.Thesefamilieslackthenecessary infrastructureorexperiencetodealwithcomplexityatsuchscales.
Simultaneously,thecharacterofwealthitselfhasevolved.Whatwasoncea portfoliofocusedonpublicsecuritiesisnowaportfoliothatincludesalternative investments,operatingbusinesses, realestatepartnerships,carriedinterest, andincreasinglycomplextrustarrangements.Eachtierbringswithitahostof newtaxandregulatoryissues.
Themoretraditionalapproach,involvingindependentadvisors,hasstartedto feelthestrainundertheseconditions.Aninvestmentstrategymadewithoutthe counselofawealthstrategistcouldpresentproblemsregardingliquidity.An estateplandesignedwithoutconsiderationgiventoexitsfrombusinessactivities could“lockin”familiesintoless-than-desirableresults.
“Theriskstodayarenotmarketrisks,”saysaseniorexecutiveatalargemultifamilyoffice.“They’recoordinationrisks.”
Thesingle-familyandmulti-familyofficescameintoexistenceasaresultofthis reality.Theyofferintegration,whichinvolvescombiningtaxplanning, investmentplanning,estateplanning,philanthropicplanningandgovernance planningunderasingleumbrella.
FromBackOfficetoStrategicNerveCenter
Familyofficeshaveexistedinmanyshapesandsizessincethe19thcentury, servingnameslikeRockefeller,Morgan,Rothschildandothers.Accordingto industryestimates,therearenowover7,000familyofficesworldwide.
Theearliestfamilyofficesfunctionedlargelyinanadministrativecapacity.They paidbills,maintainedbookkeeping,producedcashflowreports,managed investments,filedannualLLCandgrossreceiptreturns,preparedoroversawtax complianceandensuredthatwealthdidnotslipthroughthecracks.Today,a familyofficeoperatesmorelikeasmallinstitution.
Inthemodernenvironment,thetypicalfamilyofficeisresponsiblefor:
Integratedtaxandestateplanning
Sourcingandduediligenceofprivateinvestments
Frameworksandeducationalprogramsrelatedtofamilygovernance
Astrategicapproachtophilanthropyandimpactevaluation
Riskmanagementandassetprotection
AccordingtoaDeloittereport,familyofficesoverseemorethan$6trillionin assetsworldwide,withmulti-familyofficesgrowingatdouble-digitrates annually.IntheUnitedStates,therehasbeenanotableincreaseinfirms servingfamilieswith$30millionto$250millioninnetworth—asegmentthat wasonceconsideredtoo“small”forfamilyofficeservices.
Thedifferencetodayisnotoneofsizealone,butofexpectations.
“Familiesdon’twanttofeellikeabunchofaccounts,”Hooversays.“Theywant tofeellikesomeoneunderstandsthewholepicture—andiswillingtoinvestthe timeinthemtoofferadynamic,tailoredandstrategicapproachtohelpachieve theirfamilyandsuccessionplaninggoals.”
MichaelHoover’sJourney:TechniciantoStrategist
ThecareerofHooverreflectsmanyofthechangesoccurringintheworldof advisors.AnativeofPennsylvania,HoovergrewupinLancasterandreceivedhis undergraduatedegreesinaccountingandfinanceandhisMasterofAccounting degreeatPennState,graduatingwithhonors.Hepassedallfoursectionsofthe CPAexamin2016andstartedhiscareeratPwCinitsPersonalFinancial Servicesgroup.
Itwastherethathegainedtheskillsetsrequiredtohandlecomplexprivate clients.Later,asaTaxDirectoratSiegfriedAdvisory,heworkedonvarious complextaxcomplianceandplanningmattersinvolvingultra-highnet-worth individualsandcloselyheldentities.
However,itwashistransitiontoworkinginafamilyofficeadvisorycapacitythat alteredhisprofessioninsignificantways.
“Onceacertainlevelofwealthisreached,thetechnicalsolutionsarerarelythe difficultpartoftheprocess,”Hoovercontinues.“Thedifficultpartistohelpthe familymakeadecisionwhenthereareseveral‘right’answers.”
Currently,HooverworksatRockefellerCapitalManagement,wherehe collaborateswithinvestmentprofessionals,trustandestateattorneys,CPAs, expertsinfamilygovernanceandphilanthropy, andothersubjectmatter specialists.Hisworkdoes notonlytaxandfinancialplanningbutfacilitating,as heengageswithfamiliesindiscussingmattersofsuccession,philanthropy,and responsibility
Thisisworkthatdemandspatienceasmuchasprecision.
HowtheLeadingFamilyOfficesareAdapting
Thereareanumberofthemesthathaveemergedtocharacterizebest-in-class familyofficeoperations.
IntegratedTaxandInvestmentPlanning
Withthefederalestatetaxexemptionbeingrenewedandmadepermanentby theOneBigBeautifulBillAct(OBBA),whicheliminatedtheTaxCutsandJobs Act(TCJA)2025sunsetprovision,estatetaxplanninghascontinuedtobea pressingissueformanyfamilies.Asaresult,familiesarere-evaluatingtheir truststructures,giftingstrategies,andliquidityplanning.
Increasingly,thesedecisionsaremadeintandemwithinvestmentstrategy ratherthantreatedassubsequentorseparateconsiderations.
IncreasedInvolvementinPrivateMarkets
Onaverage,familyofficesallocateapproximately40%oftheirportfoliosto privatemarkets,accordingtoaUBSreport.Whiletheseinvestmentsmay enhancereturns,theyalsointroduceaddedcomplexityrelatedtovaluation,cash flowmanagement,andtaxconsiderations.
Best-in-classfamilyofficesaddresstheserisksthroughrigorousduediligence andstronggovernancepracticesAswealthisdistributedacrossgenerations, decision-makinghasbecomemorestructuredandsystematic,replacingwhat wasoncealargelyinformalprocess.Educationandclearlydefinedroleshelp reducethepotentialforconflictandensuretrustremainsintact.
“Governanceisnotcontrol,”Hoovernotes.“Governanceisclarity”
WhyThisMattersBeyondWealthyFamilies
However,thegrowingnumberoffamilyofficeshasseveralimplicationsthat extendbeyondindividualfamilies.Fromaneconomicstandpoint,familyoffices
aremajorcapitalallocatorsinthesectorsofprivatebusinesses,property,and impact-drivenventures.Theirlong-termapproachprovidesaplatformfor innovationthatisnotpursuedinthepublicmarkets.
Socially,thefamilyofficeischangingthefaceofphilanthropy.Strategicand result-orientedphilanthropyhasreplacedcheckbookphilanthropy,andthe resultscanbeseeninthefieldsofeducation,healthcare,andcommunity development
Professionallyspeaking,thismodelistransformingwhatitmeanstohavea careerinaccountingandfinance.Youngprofessionalsarelookingforworkthat combinesskillwithmeaningandhumanconnection.
“‘Thisworkisatthecrossroadsofnumbersandvalues,’Hooverexplains.‘That’s whatmakesitmeaningful.’”
Navigating2026andBeyond
Lookingforward,onethingiscertain–itisuncertain.Political,socialand economicchangesarelikelytochangeestatetax,incometax,andoverallfamily wealthplanning.Theprivateequitymarketislikelytoseeconsolidationin financialadvisorycompanies.Andgenerationalshiftsarepoisedtochallenge traditionalnotionsaboutwealth.
Next-generationmembersofafamilymayemphasizesustainability, transparency,andimpact,inadditiontoreturnoninvestment.Familyoffices thatdonotevolvewillberenderedirrelevant.
AsLisaShalett,amemberofthemanagementteamforMorganStanleyWealth Management,explains,“Thenextgenerationisnotjustinheritingwealth,they areinheritingresponsibility”
StewardshipinanAgeofComplexity
Thecontemporaryfamilyofficeisnotastatussymbol,butanecessity.Ina worldwherewealthisincreasinglycomplexanditsimplicationsbroader,families arelookingforprofessionalswhocancombineknowledge,strategyandfiduciary duties.
Asaprofessional,MichaelHooverispassionateaboutpartneringwithclientsand families,guidingthemthroughtheirmostimportantfinancialandlifedecisions. Herecognizesthateveryfamily’sjourneyisuniqueandstrivestoprovide insightfuladviceandinnovativesolutionsthatfocusonlong-termvalueand familyalignment.Whethersupportingfamiliesthroughsuccessionplanningor helpingthemadapttochangingmarketconditions,hisgoalisalwaystoserveas atrustedpartner Thisisatransitionfromtransactiontostewardship
