Bank of America Family Office Study: Next Generation Set to Reshape Family Offices
A quarter of surveyed family offices have experienced a leadership transition within the past decade.
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Rhea-AI Summary
Bank of America (BAC) released a family office study examining how generational transitions are changing investment priorities and succession planning. Among offices with a potential next-generation principal, 79% predict alternative investments will become a larger portfolio share, while 77% expect philanthropic priorities to change.
Succession planning showed gaps: 83% have identified a successor, but only 27% have a trust distribution policy or guiding principles. Among offices that experienced a transition within the past decade, only 37% described the incoming principal as very prepared. Meanwhile, 59% plan to increase private equity exposure over the next three years. On borrowing, 77% believe the next generation will be more interested in using credit to build wealth. Regular employee use of artificial intelligence was reported by 42% of offices.
AI-generated analysis. How Rhea-AI works. Not financial advice.
A quarter have seen a transition within the last decade, and among those offices, only
Key points
- Private markets, direct investments and other alternative assets, including sports ownership, are shaping the future of family office portfolios.
- Family offices look to strengthen governance and education ahead of succession.
- Credit and AI are expected to be used strategically by the next generation.
The study found that generational influence is already shaping family office priorities as they build across generations. Among family offices with a potential next-generation principal,
Watch Elizabeth Thiessen discuss findings from Bank of America's 2026 Family Office Study.
"Today's family offices are building for the future while balancing continuity and changes today," said Elizabeth Thiessen, Head of Family Office at Bank of America Private Bank. "The families best positioned in this transition recognize that preparation goes well beyond identifying the next leader. It requires strong governance, a shared vision and the ability to adapt to changing opportunities and priorities across generations."
Alternative assets shape diversification in future family office portfolios
- Private equity remains a cornerstone of alternative allocations, representing
27% of family office alternative portfolios, while59% of offices plan to increase exposure over the next three years. - Direct investments continue to attract family offices seeking long-term value creation, with
38% citing ownership stakes as a top wealth-generation opportunity. Private equity is No. 1 (51% ). - For most family offices, capital growth is the investment priority, outranking income generation and balanced positions.
- Sports ownership is gaining traction. Four in 10 family offices hold sports investments today. Offices with at least one Gen Z or Millennial principal are most likely to own sports teams or sports-related assets.
- Art can represent a significant store of wealth. Three in 10 family offices with art holdings say that the family's collection is valued at more than
$25 million
Family offices focus on closing readiness gaps as leadership transition nears
- Most family offices have identified a successor (
83% ), but only27% of offices have a trust distribution policy or guiding principles in place. - Governance and family education remain central to successful transitions. Nearly all (
91% ) agree they help keep families aligned on priorities, yet fewer than half (40% ) of offices have a formal family education program. - Nearly nine in 10 agree governance structures help reduce family disagreements, and
73% plan to adopt additional governance structures in the next three years. - Family dynamics remain the top governance challenge (
45% ), followed by the complexity of shared assets (37% ) and undefined family expectations (36% ).
Credit emerges as a strategic wealth tool for the next generation
- While credit use is nearly universal among family offices (
92% ), only27% use leverage consistently as part of a long-term wealth strategy. - Today, family offices primarily use credit to support real estate investments (
45% ), remain invested through market cycles (42% ) and bridge short-term liquidity needs (38% ). - Future principals may take a more strategic approach to borrowing. Nearly eight in 10 family offices (
77% ) believe the next generation will be more interested in using credit to build wealth. - Business-owning families are more likely to embrace credit as a wealth-building tool, with more than twice as many using leverage as part of a long-term wealth strategy compared to families without a wealth-generating business (
32% vs.14% ).
AI becomes a competitive advantage for modern family offices
- AI adoption is common across family offices, with
42% of family offices reporting regular employee use, primarily for data analysis (64% ), meeting summaries (57% ) and automation (49% ). - Demand for technology continues to grow, and
83% of family members expect their family office to implement new technology solutions. - Family offices view AI as a strategic advantage, not just an operational tool. Eight in 10 believe AI has the potential to improve investment returns, rising to
88% among family offices with next-generation involvement.
Read more about the study findings: Building for Generations (PDF).
2026 Bank of America Private Bank Family Office Study methodology
In the 2026 Bank of America Family Office Study, Escalent, a research firm, surveyed 355 family office decision makers in the
Frequently asked questions
Question: What family office services does Bank of America Private Bank provide?
Answer: Bank of America Private Bank's Family Office practice supports families across governance, investment strategy, strategic credit, trust and estate planning, philanthropy, family education, treasury management, bill pay, accounting and reporting, and specialty asset management. Dedicated Family Office Strategists work alongside Private Bank teams to help families navigate complex decisions related to operating businesses, multigenerational wealth and family governance.
Question: What differentiates Bank of America's approach to family office services?
Answer: Bank of America Private Bank is differentiated by its ability to connect family offices with capabilities across the broader bank. Through coordinated engagement with Global Commercial Banking, Global Corporate & Investment Banking and Global Markets, families can access treasury and liquidity solutions, commercial and corporate lending, capital markets capabilities, and other specialized resources. Private Bank advisors remain at the center of the relationship, helping ensure a coordinated experience across the enterprise.
Question: How does Bank of America Family Office Solutions use technology?
Answer: Technology plays an important role in helping family offices manage growing operational complexity. Through a fully outsourced infrastructure solution, families can access aggregated reporting, accounting, bill pay and treasury management capabilities. These services are augmented by CashPro®, Bank of America's integrated digital banking platform that helps businesses and family offices manage cash, payments, and liquidity, while delivering insights on how to make their business operations more efficient.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in
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Reporters may contact
Carolyn Batt, Bank of America
Phone: 1.646.983.1369
carolyn.batt@bofa.com
Important disclosures
Neither Bank of America Private Bank nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Bank of America Private Bank is a division of Bank of America, N.A.
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SOURCE Bank of America Corporation
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Bank of America's family office study find about succession readiness?
Among family offices that experienced a transition within the past decade, only 37% said their incoming principal was very prepared. Although 83% of offices have identified a successor, only 27% have a trust distribution policy or guiding principles in place.
How do family offices expect investment priorities to change in Bank of America's study?
Among family offices with a potential next-generation principal, 79% predict alternative investments will represent a larger portion of portfolios going forward. Across surveyed offices, 59% plan to increase private equity exposure over the next three years.
How was Bank of America's 2026 Family Office Study conducted?
Research firm Escalent surveyed 355 U.S. family office decision makers in January and February 2026. Participating offices ranged from $25M in assets under management to more than $5B, with the majority over $500M. Respondents included principals, executives and investment professionals.