There is a growing need for flexible structures in family offices as they adapt to address the need to uphold values, safeguard legacies, educate heirs, and maximise technology amid complex markets, according to Morgan Stanley Wealth Management.

The firm’s Future-Ready Family Office report outlined essential focus areas and recommended steps for family offices to target growth more effectively.

It stated that, with the number of family offices set to rise by 75 per cent by 2030, trends indicated a growing urgency and demand for adaptable structures that help ensure offices meet their goals.

Furthermore, Morgan Stanley Wealth Management noted that offices were facing a faster pace of intergenerational wealth transfers, which underscored the need to remain relevant for future generations.

The report set out six ‘essential pillars’ that family offices will need to embrace to keep pace.

These included allowing governance to evolve by balancing flexibility with clear priorities, allowing for changes both within and outside the family, regularly reviewing governance rules, and involving younger generations.

It also suggested that offices should establish a healthy pipeline to invite, train, and promote fresh talent, and highlighted that planning for succession and delegating responsibilities to younger staff was essential.

To stay at the forefront of market trends and maximise investment capabilities, Morgan Stanley Wealth Management said that family offices required robust, reliable data sources and the capability to build or access a consolidated reporting platform.

“A rigorous approach to deal sourcing and due diligence is also necessary, defining investment parameters and adhering to a strict process for sourcing and vetting new deals,” the report said.

Family offices were also urged to ‘fill’ the financial education gap and help prepare younger generations to ‘carry the torch’.

The report noted that family offices were increasingly targeted by cyberattacks that threatened long-term stability, and recommended measures including automatic updates, unique strong passwords, multi-factor authentication, and the careful handling of links and attachments.

Finally, Morgan Stanley Wealth Management stated that offices were under pressure to stay up to date with advancements in technology, particularly artificial intelligence (AI).

While the firm acknowledged that AI can help family offices operate more efficiently, it was key to fully understand the potential security implications and ensure a secure perimeter for family information.

“Family offices are pivotal in managing wealth and preserving legacies, and as families and environments evolve, so must the industry,” said Morgan Stanley Wealth Management head of private wealth management, Liz Dennis.

“This guidance is designed to support family offices of all shapes and sizes as they work to ensure continuity across generations. Even with technology's potential, human expertise remains irreplaceable—and forward-thinking family offices must define clear strategies and infrastructure to continue adding value as indispensable partners for generations to come.”

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