Erik Christoffersen is a managing director at the wealth management firm AlTi Global and an active investor in real estate, cybersecurity, wearables, clean tech, medical devices and other technology startups. He talked with Crain Currency about tax changes on the horizon, best practices in hiring, and tech strategy for family offices.
We’re living in uncertain times with the start of a new presidency, and tax changes are top of mind for the ultrawealthy. How should family offices position themselves from a tax, governance and succession-planning perspective?
The big question of course is whether the [Tax Cuts and Jobs Act] will be extended. … The House passed a bill that addresses this. Now it will depend on whether the Senate passes this legislation.
Independent of timing, preparation is key. Having documents drafted and meetings scheduled with advisers in advance allows family offices to react quickly to tax changes. And equally important is the overall structure adopted for modifications, reversals or additions to adapt to potential tax policy changes. A well-thought-out strategy should account for both favorable tax law changes and the possibility of reverting to previous approaches if no changes occur. By creating an approach that allows for flexibility, family offices can remain well-positioned regardless of legislative outcomes.
We expect minimal impact on governance, unless the new administration prompts family offices to start having conversations about this. When it comes to succession planning, our overriding recommendation is to engage with the next generation as early as you can — way before you think you might need to. Allow time to understand their needs and better prepare them for what is coming so it doesn’t happen in one fell swoop. So it is best to start planning well in advance of any transition and to give yourself time to start engaging the next generation around decision-making and purpose. Start the conversations early and not in a rushed way.
Given your industry background and expertise, you’ve identified talent and recruitment as significant pain points for family offices. How are you seeing these challenges play out across the industry?
This really starts with the retention of key staff. Too often we neglect to reflect on what we are doing for the staff members we value. And since it is only getting harder to recruit new talent, the first thing to do is to make sure you do not lose them. With poaching of talent on the rise, this is a distinct possibility. Take proactive measures to review compensation; try to understand what people want to achieve and how you could offer a long career path. It is also a good idea to look at market rates — because they’ll know that, too — and consider making appropriate adjustments proactively.
Another major challenge is the recruitment of top talent rather than just filling a role. As we reported in the 2024 AlTi Campden Family Office Operational Excellence Report, close to two-thirds of all family offices find it hard to recruit new talent. One way to address this is to use a specialist search firm that focuses on family offices.
Having a strong culture is crucial to attract great talent — one that reflects your values, an exciting vision and fosters a gratifying work environment. For highly specialized roles or positions, take into account that it may not require a full-time hire. Outsourcing with a multi-family office or another strategic partner with the right expertise can be a smart alternative.
Lastly, it is really important to spend the time upfront to get the recruitment process right, so it’s not rushed and the criteria for selecting the right person is understood by all. One mistake many make is that once they have found a good candidate, they do not allow enough time for the candidate to complete their diligence process after getting an offer so that they fully understand what they’re signing up for, which will minimize surprises that come up in the beginning.
Technology is becoming increasingly challenging for family offices to manage internally. What are some of the key issues they’re facing?
Tech strategy for a family office needs to be divided into offense and defense. On the one hand, tech can enable better efficiency, enhance offerings and improve client experience. On the other, you need protection from cyber threats. So when people start thinking about the sort of tech they need, it is often a bigger picture, which requires more advanced capabilities than they originally thought.
Hence, one should not underestimate the investment needed to get the right technology. Identifying the tangible target benefits and protections upfront is important to the sizable financial outlay required.
If you thought it was hard to find talent in general, it is even harder to recruit IT talent in-house. In fact, about 70% of family offices are outsourcing IT services, according to the 2025 AlTi Campden report, which is up from 60% in the 2024 report.
What are some best practices for managing the complexity of technology in family offices?
First, our advice would be not to try to do it all in-house. If you do, make sure you have the talent to support those applications. But generally, we think it’s better to try to find a strategic outsourcing partner. Many family offices are and should consider outsourcing as an effective strategy to meet their IT needs. This will often get them access to both better talent and better solutions, all at a lower cost than doing it in-house.
Best practices include undertaking a landscaping analysis that identifies a broad set of solutions for a particular area or need, to allow for exploration of multiple solutions before selecting the right one.
Another important best practice, related to leveraging cognitive AI, is a strategy for organizing how and where all the data of the family office resides so that it can be part of a proprietary LLM (large language model) that a family office will want to use. And a third best practice is tied to existing tech solutions. Family offices should take more time to learn the full capabilities of that solution and identify ways to get more value from it.
Finally, any cybersecurity strategy should encompass not only an initial audit and implementation of appropriate solutions but also how monitoring of cyber risks will be performed as well as a plan developed in advance for how to recover from a cyberattack — because it is not a question of if one happens, but when one does.
For budgeting purposes, technology should not be treated as a one-time or flat expense. Instead, it requires ongoing evaluation and investment to keep pace with rapid advancements. Regularly reviewing tech infrastructure and considering upgrades helps to ensure that systems remain effective and secure.
Why preserving generational wealth takes more than financial strategy
By DAWN MARIE LA MONICA
The largest wealth transfer in history is approaching — $124 trillion is expected to change hands by 2048. Behind those staggering numbers lies a troubling reality: Sophisticated financial planning alone cannot secure multigenerational legacies.
While first-generation wealth creators meticulously craft investment vehicles and tax strategies, a silent crisis brews. Studies suggest that most third-generation inheritors feel disconnected from their family’s wealth purpose. The sobering adage that wealth goes “from maker to taker to faker” across three generations persists with unsettling accuracy.
G1 creators typically built wealth through traditional industries, disciplined financial habits and high-touch relationships defined by grit, hard work and patience. G3 heirs, by contrast, are digital natives who prioritize impact, sustainability and technological innovation.
This misalignment creates a cultural divide that traditional governance structures cannot bridge.
The fundamental disconnect isn’t about money. It’s about meaning.
Neuropsychological research shows that purpose-driven decision-making activates different neural pathways than purely financial calculations. When next-gen members don’t understand the “why” behind the wealth, they become consumers rather than stewards of capital.
Beyond balance sheets: The human element
Financial literacy has long dominated next-gen preparation. Yet longitudinal studies reveal more pressing issues: rising rates of anxiety, identity crises and burnout among inheritors. Epigenetic research suggests that inherited wealth without inherited purpose creates neurobiological stress responses that affect decision-making capabilities.
The psychological burden of wealth — often called “inheritor’s guilt” — creates paralysis through documented cognitive dissonance. G3 members navigate conflicting pressures: honoring family legacy while forging their own path, preserving capital while deploying it meaningfully, and embracing privilege while living authentically.
This mental health dimension represents a significant blind spot in legacy planning. Research in developmental psychology shows that identity formation becomes significantly more complex for inheritors, who must integrate wealth into their self-concept without having earned it. Family offices that focus exclusively on investment strategy miss this critical human element — one that ultimately determines whether wealth endures or dissipates across generations.
The digital environment compounds these challenges. Neuroimaging studies have found that digital natives process information differently, with shorter attention spans but greater capacity for multitasking and pattern recognition. Without strong psychological foundations, wealth inevitably dissipates through misaligned decision-making.
Forward-thinking family offices are evolving beyond traditional models. The shift moves from rigid governance to holistic guardianship, nurturing not just financial assets but human capital. This approach aligns with the modern understanding of neuroplasticity: the brain’s ability to reorganize itself through purposeful activity and meaningful engagement.
Effective strategies include purpose-driven wealth statements articulating values, not just valuations; cross-generational forums where G1 wisdom meets G3 innovation; experiential learning that leverages the brain’s enhanced retention through embodied cognition; integrated mental health resources that address the unique stressors of inheritors; and technology platforms that digitize governance to enhance next-gen engagement.
Family offices that thrive across generations foster a shared sense of purpose. Cognitive psychologists have documented that collective purpose creates neural synchrony between individuals — literally aligning brainwaves to enhance communication and trust. When inheritors understand both the responsibility and opportunity of wealth, they become stewards rather than spenders.
The digital transformation imperative
As digital assets become increasingly central to modern portfolios, family offices face another challenge. Traditional succession plans weren’t designed for cryptocurrency wallets, tokenized real estate or digital securities — assets that operate on different cognitive frameworks than traditional holdings.
Studies in behavioral economics reveal major generational differences in risk assessment of digital versus physical assets. While G3 members intuitively understand digital assets, family patriarchs often struggle with concepts like blockchain. Without bridging this knowledge gap, families risk significant portions of their wealth becoming inaccessible during transitions.
Progressive family offices are replacing siloed approaches with integrated models that address financial literacy, emotional intelligence, purpose alignment, digital fluency and governance innovation, supported by neuroscience research on integrated decision-making.
They’re engaging experts whose communication styles resonate across generational neural frameworks. Neurolinguistic research confirms that how information is delivered significantly affects retention, making generational resonance not just preferable but neurologically necessary for successful wealth transfer.
The statistics are sobering: Only 30% of family businesses survive into the second generation, and just 12% reach the third. Longitudinal studies reveal predictable patterns of cognitive and emotional disconnect preceding financial dissolution. Failed transitions lead to fractured relationships, litigation and dissolved legacies.
The path forward
The most successful family offices recognize that preserving wealth across generations requires more than investment acumen. It demands emotional intelligence, communication skills and a shared sense of purpose that transcends market cycles. Neurological research shows that integrated approaches build the neural connectivity required for adaptive, generational decision-making.
As one family office principal reflected: “We spent decades building financial capital, only to realize too late that we hadn’t invested enough in our family capital. The latter ultimately determines the former’s longevity.”
For G3 wealth preservation, the solution isn’t just better financial strategy — it’s better human strategy, grounded in the neurobiological foundations of decision-making, identity and purpose.