New frontiers for family offices: emerging issues for cross-border family office structures and investments

Luis Enrique Torres
Von Wobeser y Sierra, Mexico City
ltorres@vwys.com.mx

Report on a session at the 17th IBA/ABA US and Latin America Tax Practice Trends Conference in Miami

Wednesday 18 June 2025

Session co-chairs
Seth Entin Greenberg Traurig, Miami
Carola Trucco Horwitz Barros & Errázuriz, Santiago

Speakers
Paulo Bento Madrona Advogados, Sao Paulo
Lowry Brescia Stonehage Fleming, Miami
Eduardo Cukier Kostelanetz, New York
Guadalupe Díaz-Súnico Gómez-Acebo & Pombo, Barcelona
Gabriela Pellón Galicia, Mexico City
Diego Salto Van der Laat Consortium Legal, San José

Introduction

The panel gathered practitioners from across jurisdictions to discuss the evolving landscape for family offices. With increasing globalisation, intergenerational wealth transfer and regulatory scrutiny, family offices today face complex challenges in structuring, compliance and legacy planning.

The discussion provided a comparative analysis of how family offices operate in various countries, the tax and legal frameworks they navigate, and the strategic role they play in wealth preservation.

Panel discussion

Defining the modern family office

The conversation opened with a foundational question: what is a family office today? As co-chair Carola Trucco noted, ‘The real worth of the family office lies in its ability to support families in alignment, continuity and intergenerational governance’. Modern family offices go beyond asset management to encompass emotional dynamics, succession planning, education and philanthropic objectives.

Four broad types were identified:

• single-family offices;
• multi-family offices;
• private trust companies; and
• virtual family offices.

Each model varies in its level of control, scalability and jurisdictional complexity. According to industry estimates, there are over 7,000 family offices globally, managing close to US$6tn in assets. These structures are evolving rapidly, particularly in emerging markets where traditional legal definitions are being challenged by the complex needs of ultra-high-net-worth families.

Lowry Brescia observed that today’s family offices also serve as vehicles for expressing family identity and vision. This includes the integration of environmental, social and governance (ESG) principles into investment strategies, promoting long-term value creation aligned with the family’s values. Family offices are increasingly seen not just as financial hubs, but as legacy institutions.

Structuring across jurisdictions

Paulo Bento emphasised the trend toward hybrid models that combine local legal infrastructure with global oversight. Families often rely on external advisers to supplement in-house capabilities, particularly in areas like tax transparency, cybersecurity and intergenerational wealth planning. He also noted the growing interest in Brazil in formalising family governance through shareholder agreements and family protocols.

Diego Salto Van der Laat described Costa Rica’s evolving regulatory environment, highlighting that despite the country being an OECD member, tax treaties are limited, creating reliance on domestic rules. He explained that ‘structuring must be tailored to each country’s specific legal and reporting requirements, especially as families expand their international footprint.’ Costa Rican families often adopt a modular approach, blending domestic trusts with international holding companies.

In Mexico, Gabriela Pellón noted that while there is no specific statute for family offices, families often utilise Mexican trusts or companies to manage intergenerational wealth and meet compliance demands under Common Reporting Standard (CRS) and controlled foreign corporation (CFC) regimes. She also emphasised that regulatory changes in Mexico are increasingly targeting passive foreign investment structures, which requires families to reassess legacy structures for ongoing compliance.

Guadalupe Díaz-Súnico highlighted how the Spanish legal system’s treatment of passive investments through regulated vehicles has improved, allowing family offices to preserve tax advantages while maintaining operational flexibility. Spain’s wealth tax and inheritance regime continue to pose challenges, especially for families with non-resident heirs, driving the use of special purpose vehicles and holding companies in favourable jurisdictions.

In the US, Eduardo Cukier discussed whether family office activities create a ‘US trade or business’ and how to avoid such a classification to maintain favourable tax treatment. He explained that ‘typical administrative activities – bookkeeping, research, investment management – generally do not create a taxable presence’. However, he cautioned that direct involvement in operational businesses or shared services among family members can inadvertently create US tax exposure.

The panel also addressed the importance of information reporting regimes such as the Foreign Account Tax Compliance Act (FATCA) and CRS. Several panellists expressed concern about privacy and data security, given the increased transparency required under international tax frameworks. Ensuring that structures comply with automatic exchange of information obligations without compromising confidentiality is now a top priority for legal advisers.

Tax and succession considerations

Succession planning was a recurring theme. Family offices must address estate taxes, especially when family members reside in multiple jurisdictions. For instance, US citizens inheriting interests in foreign private equity funds may face significant tax inefficiencies.

The panel explored structures like grantor trusts, holding companies and purpose trusts, which can help preserve continuity while minimising tax exposure. Díaz-Súnico explained how Spanish families are increasingly relying on foundation-like structures abroad to navigate CFC and inheritance tax issues.

In Latin America, panellists noted the challenge of balancing confidentiality with tax transparency. Family offices are often tasked with managing the reputational risk associated with cross-border tax compliance, requiring internal governance mechanisms that extend beyond traditional accounting.

Panellists also examined wealth taxes, CRS obligations and the increasing importance of aligning structures with family values. As Trucco noted, ‘structures only work if they reflect the people behind them’. Integrating family governance frameworks with tax planning was presented as a best practice, ensuring that legal form aligns with familial substance.

Conclusion and final remarks

As family offices become more global and sophisticated, they must adapt to a fast-evolving legal and tax environment. A one-size-fits-all model is no longer viable. Instead, bespoke multi-jurisdictional structures are necessary to ensure legal compliance, tax efficiency and intergenerational cohesion.

The panel concluded that the future of family offices lies in intentional design: strategic structuring that aligns governance, purpose and planning. Technical excellence must be paired with emotional intelligence and cultural alignment.

Seth Entin agreed that collaboration across jurisdictions is no longer optional. The increasing overlap between tax regimes, disclosure obligations and anti-abuse rules requires a high degree of coordination among legal, tax and investment advisers. Additionally, technology and digital transformation are reshaping how family offices operate, with data security, automation and transparency becoming fundamental pillars of future-ready structures.

Finally, Trucco summarised that ‘legacy is not just about trusts and tax – it’s about preserving what matters most to the family’. Thoughtful planning, grounded in legal precision and personal values, remains the cornerstone of long-term success for family offices.