How to Build a Virtual Family Office

You have wealth. You have a trust. You have a business, properties, or even global assets.

What you do not have is a team of ten professionals in suits managing everything full-time.

That is where the Virtual Family Office (VFO) model comes in — a lean, collaborative framework built around trusted professionals. It helps you preserve wealth, reduce tax, and manage family governance without the burden of setting up a physical office.

This model is ideal for families with $5 million to $50 million or more who want structure, not bureaucracy.

What Is a Virtual Family Office?

A Virtual Family Office is not a building — it is a coordination model.
It is built around your family’s needs using advisors you already trust:

• A lawyer (often the strategic anchor)
• An accountant or tax adviser
• An investment adviser or private banker
• Optional additions: a philanthropy consultant, family governance advisor, or mentor for younger heirs

These professionals do not work for you full-time — but they do work together, following a shared vision and clear strategy.

Five Steps to Setting Up Your Virtual Family Office

Step 1: Appoint a Strategic Legal Lead
Your lawyer (or a boutique firm) becomes the legal strategist — overseeing trust structures, estate plans, and advisor coordination.

Step 2: Identify a Core Advisory Group
Who already knows your family, values, and assets? Build your VFO from this base. There is no need to start from scratch.

Step 3: Define Family Goals and Risk Areas
Clarify your long-term goals. What do you want to preserve or protect? Prioritise succession, control, philanthropy, or asset protection before selecting structures.

Step 4: Set Governance and Communication Rules
Set expectations: regular check-ins, cloud-based collaboration, clear responsibilities for each advisor. Everyone knows who does what.

Step 5: Implement with Tailored Structures
Examples may include:

• Reviewing trust deeds
• Creating a family charter
• Establishing a Private Ancillary Fund (PAF)
• Drafting Binding Financial Agreements
• Building a tax-aligned investment vehicle

What It Looks Like in Practice

The Riley family in Brisbane holds $15 million across trusts, property, and a private business.

They:

• Appoint their long-time lawyer as lead advisor
• Involve their accountant and investment adviser
• Hold three strategy sessions per year
• Implement a philanthropic plan and governance rules for the next generation

They do not hire staff — but they operate like a coordinated, values-led enterprise.

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FAQ

Q: How is this different from just “having a lawyer and accountant”?
A: A VFO formalises the team. Instead of working in silos, your advisors collaborate under a unified strategy.

Q: Do I need a corporate structure?
A: Not necessarily. Most VFOs work within existing trusts and companies — the difference is in the coordinated approach.

Q: Is this model only for ultra-wealthy families?
A: No. Many families start once their affairs exceed $5 million or become too complex for casual management.

Q: Can I build a VFO gradually?
A: Absolutely. Start with your legal anchor and build your team as your needs evolve.

(Note: This article and FAQ are general information only and do not constitute legal or financial advice. Please seek professional advice tailored to your family’s situation.)

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