Family Office Symposium 2025 | Key Takeaways

During this session, the panelists discussed the cyber threat landscape and key strategies for preventing and responding to cyberattacks, scams, impersonations, and other fraudulent activities affecting family offices.

Top takeaways included:

• Family offices are sitting on troves of sensitive information at a time when threats are ever-present. Artificial intelligence, phishing, and business email compromise pose significant cybersecurity risks, and nation-state actors pose a threat to wealthy individuals traveling internationally.
• Family offices can protect themselves by running phishing drills, training family members and staff, and leaning heavily on third-party partners for cybersecurity matters.
• If an attack occurs, involve the Federal Bureau of Investigation or law enforcement immediately, as the first 24 to 72 hours are critical. Family offices should have incident response plans in place.

During this session, the panelists discussed best practices and cautionary tales to help understand the full potential and the risks associated with running a private trust company.

Top takeaways included:

• A private trust company can provide a long-term fiduciary solution for families due to potential tax savings, stability, greater organization, and smoother transitions between generations, but it must be properly structured and administered to minimize exposure.
• To provide the highest level of protection for private trust company decision-makers, ensure the private trust company is well capitalized, follows the established processes to avoid veil piercing, provides for indemnification, and obtains insurance.
• Always be mindful of who is in the room (or on the email chain) when communicating with the private trust company’s lawyers. Including a third party in communications will cause a waiver of privilege unless the third party is necessary for rendering advice.

During this session, panelists discussed economic factors driving investments in sports franchises, the consequences of league rules on acquisition, new sources of capital for sports franchises, tax planning issues and strategies, and succession and governance considerations for the entities owning sports franchises.

Top takeaways included:

• Valuations of sports franchises continue to increase, leading sports leagues to allow new sources of capital to invest. Acquisition of sports franchises by single owners is difficult without syndication, so leagues have allowed syndication with multiple minority owners, private equity funds, and sovereign wealth funds to reach these increasing valuations.
• Understanding league rules remains critical for investors entering new sports franchises or planning with their existing sports franchise investments. League rules continue to evolve, inevitably impacting the information, rights, and planning opportunities available to new and existing investors.
• The illiquidity of the asset class continues to present challenges, particularly with respect to estate taxes when an investor passes away. Acquiring interests in irrevocable trusts is ideal, if possible, as post-acquisition planning may be challenging based on league rules and syndicate agreements.

During this session, the panelists discussed key legal and regulatory developments impacting ultra-high-net-worth families and their family offices, along with strategic considerations for navigating an evolving landscape.

Top takeaways included:

• Keep in close contact with counsel regarding tax law changes, as proposals are numerous, and the exact structure and duration of potential changes are fluid. Tax policy discussions are evolving rapidly; they have included proposals to eliminate the income tax on tips and Social Security income, as well as the estate tax (but not the gift tax), and make up for reduced revenue from tariffs.
• High market volatility can create strategic planning opportunities for wealth transfer, including a focus on transferring depressed value assets.
• Fears of instability are causing an increased interest in holding assets abroad, but this comes with complex regulatory, tax, and legal challenges that require careful navigation to avoid adverse unintended consequences.
• During uncertain times, there is great interest in tax minimization strategies, but beware of “too good to be true” options. Valid tax minimization strategies, including a change in residency to Puerto Rico that allows for future federal income tax reductions without expatriating and relinquishing US citizenship, are predicated on compliance with all tax law requirements and typically include meaningful changes to residency or asset ownership that can be glossed over by promoters.
• The Corporate Transparency Act and its resulting Beneficial Ownership Information reports are not currently applicable to US persons and companies, although foreign companies still must comply.

During this session, the panelists shared insights into current IRS audit trends and offered best practices for family offices to reduce the risk of an audit and prepare effectively if one occurs.

Top takeaways included:

• The IRS is continuing to lose employees in staggering numbers. The cuts to IRS employees amount to roughly 50% of the IRS headcount, and the cuts are primarily in the enforcement divisions. There is a long-term IRS hiring freeze in place.
• It is important to consider that even with the current IRS chaos, only some cases have been impacted by delays and have received little to no attention from the IRS, while other cases have not been affected. Therefore, the current state provides both opportunities and challenges.
• Some top best practices include:
  • Proactively identify risks and exposure areas before the audit begins.
  • Take consistent positions or have a reason for a different position in a later year.
  • Ensure you have clear documentation to substantiate your positions.

During this session, the panelists engaged in a broad discussion of transfer tax and income tax planning strategies designed to maximize tax efficiencies and take advantage of market conditions. Topics included transfer tax planning opportunities in 2025, the impact of potential tax reform on family office structures, planning strategies for concentrated equity positions, and powerful planning with private placement life insurance.

Top takeaways included:

• Individuals and family offices invested in highly concentrated equity positions looking to unlock liquidity with minimal income tax consequences should explore variable prepaid forward contacts and long-short tax-aware equity index investing.
• Interim asset volatility can produce planning opportunities, such as the creation of grantor retained annuity trusts (GRATs) benefiting from spiking return paths and late allocations of the generation-skipping transfer (GST) tax exemption to prior gifts if values decline.
• Individuals and family offices can hedge the risk of transfer tax changes by planning gifts with exit options and identifying ways to use the GST tax exemption exceeding the gift tax exemption.
• Private placement life insurance can be a powerful planning tool, especially when properly incorporated into an individual’s estate plan, providing tax-efficient investments and creditor protection.

During this session, family office investment professionals provided their insights on shaping a family investment program.

Top takeaways included:

• Spend time getting to know your family and establishing your investment policy. A customized investment solution will set the goal posts. Outline the duration of investments, address volatility concerns, and meet liquidity needs.
• Missing the best days in the markets can have a real impact on the compounding opportunity of investing.
• When evaluating various asset classes, ensure the family is involved. In the family office world, much wealth comes from a concentrated investment or specific expertise, which may necessitate a more diversified approach.

This session examined real-world crises that can fracture family cohesion, destabilize enterprise operations, and threaten generational wealth. Drawing from case studies and professional experience, the panelists demonstrated how proactive governance, relational work, and communications planning cannot only contain the damage – but also lead to stronger, more unified families in the aftermath.

Top takeaways included:

• Even well-run families are vulnerable to personal, legal, and reputational crises. These disruptive events often surface suddenly, but their roots tend to lie in longstanding, unresolved family issues. Crisis planning should be approached with the same foresight and structure as an insurance policy – rarely needed, but essential when it is.
• When a crisis becomes public, the speed and tone of the response can significantly affect how it unfolds. Clarity, coordination, and credibility matter. Responding swiftly is important but not at the expense of getting the facts right. Although a well-established reputation provides a degree of resilience in the face of public scrutiny, even private families should prepare media responses, train spokespeople, and align behind a shared message.
• Unclear or poorly communicated governance documents can accelerate conflict during a crisis. Power struggles can easily erupt without consensus on succession or trustee roles. Sound structuring must be paired with transparency and engagement to prevent distrust.
• Crises often expose longstanding relational fractures – including estrangement, generational divides, and hidden resentments. Legal documents cannot substitute honest conversations and relational investment. Families should resist superficial resolutions in favor of deeper, long-term relational work.
• Private conflicts can easily become public crises, and inappropriate online sharing can amplify crises and damage reputations across generations. Families should proactively establish social media protocols, especially during emotionally charged events.
• While crises pose risks, they can also surface uncomfortable but necessary conversations that unite families, expose structural weaknesses, prompt needed reforms, and lead to better alignment. A thoughtful, reflective approach post-crisis can lead to stronger governance and family cohesion.