As your assets grow, so does the complexity of managing them. For high-net-worth individuals (HNWIs) and ultra-high-net-worth families in the UK, the question becomes not if you need wealth management—but what kind. Two of the most sophisticated options available in 2025 are family offices and wealth managers. But which one suits your lifestyle, financial goals, and legacy planning needs?
This article breaks down the differences between a UK-based family office and a wealth management firm, helping you choose the right partner to protect and grow your wealth.
What Is a Family Office?
A family office is a private company that manages investments, estate planning, philanthropy, and day-to-day financial administration for a single wealthy family or a small group of ultra-rich individuals.
There are two main types:
- Single Family Office (SFO): Dedicated to one family, offering total privacy and control.
- Multi-Family Office (MFO): Shared services for multiple families, with more cost efficiency.
Services often include:
- Investment strategy and management
- Property management
- Tax optimisation and compliance
- Legacy and succession planning
- Lifestyle management (e.g., travel, private staff, luxury purchases)
- Charitable foundation setup and management
What Does a Wealth Manager Do?
A wealth manager is a financial advisor (individual or firm) who offers a broad range of services to help affluent clients manage their investments, tax efficiency, retirement, and estate planning.
Their services typically include:
- Investment advisory and portfolio management
- Retirement and pension planning
- Inheritance tax strategy
- Business succession planning
- Insurance and risk management
Key Differences: Family Office vs. Wealth Manager
| Criteria | Family Office | Wealth Manager |
|---|---|---|
| Net Worth Threshold | Typically £50M+ | Often starts at £250k–£1M+ |
| Service Scope | Holistic, includes lifestyle & administration | Primarily financial and investment-based |
| Privacy & Control | High (especially SFOs) | Less private, managed through advisory firm |
| Cost | High fixed cost (staff, setup, maintenance) | Lower—usually a percentage of AUM |
| Customization | Extremely tailored | Still personalised but more structured |
| Ideal For | Ultra-high-net-worth individuals/families | HNWIs and affluent professionals |
Choosing What’s Right for You in 2025
Ask yourself:
- Do you need full-time staff or just expert guidance?
- Are you managing a family legacy or personal wealth?
- Is privacy a top priority, or are you okay working with a known firm?
- Do you have multiple properties, trusts, or global assets?
For someone with £50M+ and complex needs across jurisdictions, a family office makes sense. If your assets are between £500k and £10M and you want access to investment expertise and tax planning, a wealth manager is the smarter and more economical choice.
Internal Link:
If you’re leaning toward working with a financial advisor instead of setting up a family office, read our full guide:
👉 How to Choose the Right Wealth Advisor in the UK (2025 Guide)
Common FAQs
Q: How much does it cost to set up a family office in the UK?
A: Initial setup can range from £1M to £3M annually, depending on staffing and infrastructure.
Q: Can a family office help with international assets?
A: Yes, especially multi-family offices with global tax and legal expertise.
Q: What’s the minimum net worth for a wealth manager?
A: Many UK firms now accept clients with £250k+ in investable assets, though services vary by tier.
Q: Can I transition from a wealth manager to a family office later?
A: Absolutely. Many HNWIs begin with a wealth manager and move to a family office as their wealth and complexity grow.
Final Thoughts: Strategic Planning for Generational Wealth
Family offices and wealth managers aren’t rivals—they’re tailored to different stages of your financial journey. In 2025, as the UK financial landscape grows more sophisticated, your choice should align with your long-term goals, lifestyle needs, and legacy ambitions.
Choose wisely—because how you manage your wealth now will determine how far it goes in the future.