Is It Time To Close The Family Office?Is It Time To Close The Family Office?

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Kathryn M. McCarthy is a New York City-based independent consultant to families and family offices.

There are an estimated 3,000 single-family offices (SFOs) based in the United States¹ and, according to a recent survey by the Wheaton, Ill.-based association Family Wealth Alliance, the number one concern for many is sustainability: Will the office remain financially viable? Will the family maintain the necessary cohesion and commitment? Will they manage the transition to the next generation?

These were worries before the economic crisis hit. And now that it has, some families have gone so far as to frame the dreaded question: Should we close the family office? Others haven't had the courage yet to face the question ...