As the author notes, the families that endure across generations treat fiduciary discipline as an act of stewardship, and explains why governance frameworks that are carefully designed and consistently applied reap rewards over time.

Jay Rogers, a figure in the financial and wealth management industry who has written in these page before, writes about how family offices should consider the risks they face. In this case, he visits a courtroom to demonstrate what goes on. It is the kind of perspective that adds value for our readers, we hope. 

To comment on this article, please email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com. The usual disclaimers apply to views of guest writers, and we thank Rogers for his contribution to conversations on these topics. Rogers is also a guest lecturer at the USC Marshall School of Business. 

From the witness stand, the view is focused. I've served as an expert witness in complex investment and family office litigation long enough to recognize the pattern: the costliest, most devastating conflicts share a common origin. The governance was never stress-tested.

Over the past decade, single-family office disputes have migrated from private disagreements to formal courtrooms. Families that once resolved differences at the dinner table now face discovery requests, depositions, and published judgments. Claims center on investment decisions, distribution policies, trustee selection, and beneficiary rights. Courts apply institutional standards of care to structures long viewed as purely private.

The regulatory environment has followed the same trajectory. The SEC's Division of Examinations identified fiduciary standards compliance as a top examination priority for 2026, with particular focus on conflicts of interest, investment advice disclosures, and duty of loyalty. Family offices that once operated under the assumption of perpetual regulatory exemption are reconsidering that position.

A generational transfer with a litigation premium
The timing is not coincidental. Cerulli Associates projects that Baby Boomers and the Silent Generation will transfer an estimated $84 trillion in assets through 2045, with the largest concentration of that capital flowing through high net worth and ultra-high net worth family structures. As Glenmede has noted, updated projections place that figure as high as $124 trillion, reflecting pandemic-era asset appreciation that early models didn't anticipate. That is not background noise. That's the operating environment.

Longer life expectancies compound the tension. The ABA's 2026 analysis of probate litigation trends confirms that extended longevity is driving increased disputes over mental capacity, fiduciary oversight, and shifting beneficiary expectations. Next-generation principals arrive with different risk tolerances, different time horizons, and different interpretations of original family intentions of which were anticipated in documents drafted a decade earlier.

In my direct work with more than half a dozen single-family offices spanning three continents, I saw this acceleration firsthand. Informal understandings that have been held for decades collapse under formal scrutiny. Legal defense costs routinely reach seven and eight figures. The collateral damage to family relationships often exceeds the financial toll and can take years, sometimes a full generation, to repair.

What the courtroom actually reveals
Recurring failure patterns appear with striking regularity once you've testified in enough of these matters. The most common involves investment policy statements drafted years earlier and never updated to reflect changing market conditions, family circumstances, or regulatory developments. The document exists. It just describes a family that no longer exists.

The second failure involves delegation protocols, or the absence of them. Trustees and family office executives make material decisions without documented authority or independent review. Crain Currency's reporting on family office governance failures documents one case in which a family office's chief legal officer and chief investment officer operated under a structure granting them unfettered power over all investment decisions, including a power of attorney from the principal. That case did not end quietly.

I've repeatedly testified in matters where alternative investment allocation decisions, particularly in private equity, real estate, or direct transactions, lacked any contemporaneous record of the risk analysis performed, the valuation methodology applied, or confirmation that the investment aligned with the family's stated objectives. In one matter I reviewed for the court, the absence of a formalized rebalancing policy amid a concentrated portfolio of illiquid holdings created irreconcilable tension between income-focused beneficiaries and those prioritizing long-term capital appreciation. The dispute consumed significant family resources and eroded trust that had taken generations to build.

These conflicts didn't originate from poor judgment or insufficient capital. They arose from governance frameworks designed for calm seas and never prepared for storms.

The diagnostic framework that matters
Principals and trustees can protect themselves with a short but rigorous set of diagnostics applied to existing structures. The first step is straightforward and uncomfortable in equal measure: read every governing document as though a judge will recite it aloud in open court. Not as your counsel prepared it, but as a stranger would interpret it under adversarial pressure.

Ask whether the investment policy statement remains current, specific, and measurable. Does it address liquidity requirements clearly? Does it define alternative investment allocation parameters, conflict-of-interest protocols, and succession planning triggers? Does it specify who decides when disagreement arises, and by what standard? If those answers require reading between the lines, the document needs rewriting before a litigant rewrites it for you.

The Citi Wealth 2025 Global Family Office Report, which surveyed 346 family offices across 45 countries, found that 73 per cent of family offices with more than $500 million in AuM have governance frameworks for their investment function, while only 61 per cent of smaller offices do. Governance adoption correlates with asset size because informal decision-making becomes visibly riskier as wealth grows. The families with the most to lose are often the least structured.

The second diagnostic targets decision-making records. In the single-family offices I've operated, the strongest protection has always been consistent, contemporaneous documentation demonstrating a prudent process, not merely favorable outcomes. Courts don't second-guess results. They examine whether the process was reasonable at the time the decision was made. That distinction has determined outcomes in more cases than I can count.

The third involves independent voices. An investment committee that includes external members, or scheduled third-party reviews by qualified advisors, provides credible testimony on the reasonableness of decisions later challenged. It also introduces friction that prevents the unilateral authority problems that appear in the worst cases I've reviewed.

One family I advised implemented a revised governance framework following an early internal conflict. Three years later, when a second potential disagreement arose, the documented process allowed resolution within weeks rather than escalating into litigation. The record showed a defensible process. That was enough.

The convergence of governance and Alpha
The SEC has made clear that the 2026 examination cycle will emphasize fiduciary adherence, conflict-of-interest management, and investment decision documentation. Morgan Lewis's November 2025 enforcement roundup catalogued a pattern of settled charges against registered advisors for failing to address known conflicts. Those cases mirror the structural weaknesses I encounter in private family office matters. The regulatory and litigation environments are converging on the same set of standards.

The most sophisticated families operating today no longer wait for a dispute to expose weaknesses. They apply institutional governance standards in advance. J P Morgan's 2024 Global Family Office Report found that succession planning, family governance, and cybersecurity remain top unresolved gaps for most family offices, which means that the families addressing those gaps now are separating themselves from peers who are not.

After more than 25 years managing ultra-high net worth single-family offices and advising families through multiple generational transitions, I keep returning to the same conclusion: sustained investment performance and family cohesion aren't competing priorities. They depend on each other.

The families that endure across generations treat fiduciary discipline as an act of stewardship. They protect capital and the relationships that make that capital meaningful. When governance frameworks receive serious design and consistent application, they protect both. Quietly. Without litigation. Without the seven-figure defense bills I've seen consume the very wealth they were meant to preserve.

That's the only form of fiduciary duty worth taking seriously.

About the author
Jay Rogers is a financial professional with more than 30 years of experience in private equity, private credit, hedge funds, and wealth management. He has a BS from Northeastern University and has completed postgraduate studies at UCLA, UPENN, and Harvard. He writes about issues in finance, constitutional law, national security, human nature, and public policy.