Family offices worldwide are navigating unprecedented economic shifts, from families face shifting markets to evolving regulatory landscapes. This guide equips stewards of intergenerational wealth with actionable insights on asset allocation, governance structures, tax planning, and alternative financing.

Asset Allocation Patterns: Balancing Risk and Return

Setting realistic return targets is paramount. Most family offices aim for 7–10% annual returns, leading to a well-defined asset mix that balances growth and stability.

• Public equities: ~40%
• Alternatives: 35.5%
• Fixed income: <15%
• Cash: 8%

For families seeking 11%+ returns, portfolios skew heavier toward alternatives and direct control holdings.

Geography influences strategy: U.S. families tilt toward alternatives, while international offices favor fixed income. Meanwhile, real estate exposure has decreased meaningfully in favor of public equities.

Infrastructure and Real Estate Trends

Despite growing power generation and transmission demands, only 20% of family offices hold any infrastructure investments, with an average allocation: 70 basis points. Ignoring this sector means missing a robust inflation hedge and stable cash flows.

Real estate allocations dropped in 2024, underscoring a shift to more liquid instruments. Yet, strategic real estate remains vital for diversification, especially in inflationary environments.

Gold and Cryptocurrency as Strategic Hedges

Less than 30% of family offices hold gold, averaging under 1% of portfolios. Experts recommend increasing holdings to 3–5% to serve as a reliable geopolitical hedge.

Cryptocurrency uptake remains modest despite geopolitical fragmentation. Families focused on risk mitigation often double their fixed income exposure, hedging via both traditional bonds and precious metals.

Inflation-Focused Strategies

Families ranking inflation as their top risk hold 60% in alternatives—22 percentage points above the average. Their real estate exposure is 16.3% versus 7.4% for the broader population, and hedge fund allocations are nearly twice the mean.

This approach shift capital from fixed income into private market opportunities, aligning portfolios with real asset inflation protection and uncorrelated return sources.

Cash Position Considerations

Maintaining an 8% cash position sparks debate: is it reserved for opportunistic investments or operational liquidity? With downward policy rate bias and persistent inflation, families must clarify cash’s purpose within their portfolios.

Strengthening Governance Structures

Robust governance underpins sustainable wealth management. High-performing family offices implement clear frameworks that outline authority and accountability.

• define decision-making frameworks and clear roles across generations
• clear strategy and purpose aligned with long-term family objectives
• Balance collective direction with individual investment opportunities
• Regularly revisit policies to reflect evolving family goals

Wealth-Building and Transfer Programs

In July 2026, Trump Accounts will launch for children born 2025–2028. Each account receives a $1,000 government seed, with annual contributions up to $5,000 per person.

Funds must be invested in broad U.S. equity index funds with fees capped at 0.10%. Projections suggest balances could exceed $1.9 million by age 28 if left untouched, highlighting a powerful vehicle for early wealth creation.

Gift Tax Guidelines for 2026

The annual gift exclusion remains at $19,000 per individual or $38,000 per married couple. Lifetime exemptions stand at $15 million, with excess amounts taxed at 40%. These thresholds adjust for inflation in future years, offering planning flexibility.

Alternative Home Financing Options

The Fannie Mae Family Opportunity Mortgage provides a cost-effective path for families financing homes for elderly parents or disabled adult children. Classified as owner-occupied, it offers favorable terms compared to investment property loans.

• down payment as low as 3–5%
• Primary residence interest rates
• Reduced closing costs versus second-home loans
• Enables independent living for family members

Borrowers must demonstrate financial capacity, while the assisted relative need not qualify independently, streamlining access to affordable housing solutions.

Key Themes and Strategic Imperatives

As family offices refine their fiscal frameworks in 2026, certain priorities stand out: ambitious AI integration, the realization that infrastructure investments represent key opportunities, and intensifying Operating cost pressures driven by talent competition.

Inflation remains a central concern, pushing capital toward alternatives and real assets. Meanwhile, minimal gold and crypto allocations signal an opening for families to enhance traditional hedges.

Ultimately, the Family's Fiscal Framework blends disciplined asset allocation, fortified governance, proactive tax planning, and innovative financing to sustain intergenerational prosperity.