A Bank of America survey of US family offices found that most have named a successor but few have the governance, education and distribution policies needed to manage the handover. The report also drew out attitudes to investment and wealth preservation.

Most US family offices have identified a successor but many lack the structures to manage a leadership transition, according to a study by Bank of America Private Bank. The study also found that next-generation principals are pushing offices toward alternatives, credit and technology.

Some 83 per cent of offices have identified a successor, yet only 27 per cent have a trust distribution policy or guiding principles in place. While 91 per cent agree that governance and family education keep families aligned, only 40 per cent run a formal family education program.

"The families best positioned in this transition recognize that preparation goes well beyond identifying the next leader," Elizabeth Thiessen, head of family office at Bank of America Private Bank, said. "It requires strong governance, a shared vision and the ability to adapt to changing opportunities and priorities across generations."

The multi-trillion dollar intergenerational wealth transfer is under way, and has been a topic for private banks, wealth managers and family offices for years. FWR continues to cover it from a variety of angles, as shown here, here and here.

Family dynamics are the top governance challenge, cited by 45 per cent, followed by the complexity of shared assets (37 per cent) and undefined family expectations (36 per cent). Some 73 per cent of offices plan to adopt additional governance structures in the next three years.

Generational change is already shifting portfolios. Among offices with a potential next-generation principal, 79 per cent expect alternatives to take a larger share and 77 per cent expect philanthropic priorities to change. Private equity accounts for 27 per cent of alternative allocations, and 59 per cent of offices plan to increase exposure over three years. 

Credit use is near universal at 92 per cent, but only 27 per cent of offices use leverage consistently as part of a long-term strategy. Some 77 per cent expect the next generation to be more interested in borrowing to build wealth. Families with an operating business are more than twice as likely to use leverage strategically as those without one, at 32 per cent against 14 per cent.

On technology, 42 per cent of offices report staff using AI regulartly, mainly for data analysis, meeting summaries and automation. Eight in 10 believe that AI could improve investment returns, rising to 88 per cent where the next generation is involved.

Investment
In other findings, the report said private equity remains a cornerstone of alternative allocations, representing 27 per cent of family office alternative portfolios, while 59 per cent of offices plan to increase exposure over the next three years.

Direct investments continue to attract family offices seeking long-term value creation, with 38 per cent citing ownership stakes as a top wealth-generation opportunity. Private equity is number one. For most family offices, capital growth is the investment priority, outranking income generation and balanced positions.

The report said sports ownership is gaining traction. Four in 10 family offices hold sports investments today. Offices with at least one Gen Z or Millennial principal are most likely to own sports teams or sports-related assets. On art, the report said three in 10 family offices with art holdings say that the family’s collection is valued at more than $25 million.

To produce the report, research firm Escalent surveyed 355 family office decision-makers in January and February 2026. Offices ranged from $25 million to more than $5 billion in AuM, with most above $500 million.