Bank of America released their second annual family office report last week, titled Building for Generations. 

It’s an apt title considering many family offices are preparing for leadership transition, with a new generation of family members ready to bring their own unique influence on how things are run. 

As the study discovered, the next-gen are already heavily involved and starting to reshape both family office investments and operations.

We spoke with Elizabeth Thiessen who is Head of Family Office at Bank of America Private Bank, and responsible for the annual study, which this year surveyed over 350 family offices across the United States.

Three standout findings

The 2026 publication is a comprehensive report at 40 pages in length, but there were three surprising findings that stood out to Thiessen.

First was the gap around succession readiness: “A quarter of family offices have experienced a transition in principals in the past decade, but only 37% said the incoming principal was very prepared. At the same time, 91% believe governance and family education help keep families aligned, yet only 40% have a formal family education policy or program.

Second was how underutilized credit remains as a strategic tool. “Only 25% of family offices use credit consistently as part of their overall wealth strategy, even as families navigate illiquid investments, tax considerations and other liquidity needs.”

Third was the continued shift toward alternatives. “Alternatives already represent a significant portion of family office portfolios, and still, many families still expect those allocations to grow. This growing interest also underscores why strategic credit matters. As portfolios become more illiquid, families need ways to access liquidity, bridge timing gaps and pursue new opportunities without disrupting their long-term investments.”

When asked about changes compared with last year’s report, Thiessen notes that not every theme represents a change, and what stands out in this year’s research is the broader picture around how family offices are preparing for what comes next. 

“Taken together, the findings suggest the conversation is expanding beyond investment selection alone: family offices are thinking more broadly about the structures, capabilities and tools they will need as wealth and leadership transition across generations.”

Shifting investment perspectives

So how are the next gen bringing influence to how family capital is invested?

“One of the clearest examples is sports investing. Nearly four in 10 family offices hold a sports team, franchise or other sports-related investment, and offices with at least one Gen Z or Millennial principal are the most likely to own sports-related assets.”

Thiessen notes this is part of a broader shift toward alternatives and less traditional investments. 

Among family offices with a potential next-generation principal, 79% expect alternatives to represent a larger share of the portfolio following the transition.

“At the same time, this is more evolution than wholesale change,” Thiessen adds. “The next generation is bringing new ideas and interests to the table, and sports is a good example of how those preferences can expand the types of assets families consider as part of their overall portfolios.”

The value in the research

While publishing reports can be seen as a marketing exercise, Thiessen highlights how studies like this help Bank of America identify where families may need to have deeper conversations. 

This year, those areas include succession readiness, governance and education, strategic liquidity, technology and the continued evolution of private-market investing.

“The research also helps us understand where family offices themselves are seeking support. Ninety-six percent value some form of guidance across their different responsibilities, with accounting and tax services, trust and estate planning, cybersecurity and alternative investments among the areas where they most commonly value guidance from external partners.

We use those insights as a lens for conversations with families, not as a prescription. Every family office is different. The goal is to understand where each family is today, where it wants to go and where additional expertise, planning or coordination can help support that journey.”

On the succession gap 

Thiessen says identifying a successor is only one part of preparing for a transition, and their survey shows how much broader the work can be. 

“Family offices cite the complexity of family dynamics as their biggest governance challenge, while 36% identify undefined expectations around roles and responsibilities. Although 99% of family offices manage trusts, only 27% have a trust distribution policy or guiding principles in place.

There can be a meaningful difference between having the structures to transfer wealth and preparing people to manage that wealth effectively. Successful succession requires families to address governance, education, decision-making and roles alongside the legal and financial structures.”

She also believes starting those conversations early is crucial, since succession is ultimately a process, not an event.

Relationships come first

With industry studies showing most next-gen principals will change their wealth advisors, we asked how private banks like Bank of America could offset this?

“The most important thing is to build relationships with the next generation before a transition occurs. Our research reinforces that education needs to be an ongoing process. Family offices identify personal financial responsibility, trusts, taxes, direct investing and leadership training among their priorities for next-generation education, and outside financial advisors and investment firms are already part of that educational ecosystem.”

Thiessen says for them this means engaging family members around their own priorities and giving them opportunities to build knowledge and experience rather than assuming the relationship simply transfers from one generation to the next. 

“The study also shows that 84% of family offices with a potential next-generation principal expect existing principals to remain highly involved after a transition, so this is often about creating continuity while building new relationships at the same time. Ultimately, relationships endure when each generation sees value in them independently.”

Bank vs. bank 

As both total wealth and the number of wealthy families increase, the wealth management space has become increasingly competitive and private banks have had to up their efforts to attract and retain clients.

But Thiessen sees several advantages that Bank of America has amidst this landscape. Most notable are the combination of local relationships, breadth of Bank of America’s offering, and sophisticated operational infrastructure.

“Ultimately, it’s about bringing those pieces together: a local relationship that understands the family, the breadth to serve the entire family enterprise, and the infrastructure to support the day-to-day complexity of running a family office.”

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