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A major liquidity event often sends families searching for a family office before they know exactly what one is. Through a hypothetical scenario, this post looks at where the real need usually sits: coordination across investment, tax, and estate decisions, rather than a team running every part of life.
Blog Post
by Steve Brickley, CPA

Do You Need a Family Office? What a Liquidity Event Actually Requires

Family Office
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Please see important disclosures at the end of this post.

The following is a hypothetical scenario, not an actual client, offered to illustrate how we think about this kind of moment.

Picture a tech executive — call her Sarah — who has spent twelve years at a company that just announced its acquisition. Between vested shares, options that are about to accelerate, and a secondary sale she'd done two years earlier, Sarah is looking at the kind of liquidity event that changes a family's trajectory. She has a financial advisor for her investments, a CPA who handles her annual return, and an estate attorney she met with once, years ago, to set up a basic living trust and will. None of them have ever spoken to each other.

She also has a partner who works in a different field entirely, two kids in elementary school, aging parents two states away, and a growing interest in eventually funding something — a foundation, a scholarship, she's not sure yet.

This is the kind of moment where the phone starts ringing. Bankers, wealth managers, people she vaguely knows from college — everyone has a pitch. Someone eventually mentions the phrase "family office," and Sarah starts down that search path too, unsure exactly what she's looking for but sensing that a single financial advisor isn't going to be enough anymore.

What she actually needs isn't more opinions, and it isn't necessarily a dedicated family office either. It's someone who has spent decades sitting across the table from families in exactly this position — who, in our experience, can help hold the whole financial picture at once, because they've seen enough of these moments to know where the real risks hide.

Seeing how the pieces connect

The timing of when Sarah exercises her options, and the tax treatment tied to each type of equity she holds, doesn't just affect her tax bill this year — it affects what she can contribute to a trust for the kids, what she can afford to do for her parents, and what's actually available for the foundation idea. A decision made purely for tax efficiency in one corner can quietly close off an option in another. This is the piece we often see get missed when three separate professionals are each looking at their own slice of the picture: no one is watching what happens where the slices overlap.

Thinking through it before she has to live with it

Before Sarah exercises a single option, our approach would be to build out a cash flow model — one that reflects how the proceeds actually move through her life over time, not just what lands on paper the day the deal closes. From there, we'd work through the range of ways this could unfold: what her situation looks like if she exercises this year versus staggering it over two, what a downturn in the company's stock does to unexercised options she's holding, what different paths for the trust mean for her kids ten and twenty years out.

Running alongside that is the tax question — not just this year's income tax, but how income, estate, and gift tax interact with each other as the estate grows. A choice that minimizes this year's income tax can sometimes raise the estate tax exposure ten years out, or limit what can move to the kids gift-tax-efficiently today. Looking at all three together, rather than one at a time, is where we find the real savings tend to live.

None of this is meant to hand Sarah a single "right answer." It's so that whatever she decides, she's decided it with the fuller picture in view rather than reacting to whichever advisor called first.

Handling the parts that would otherwise eat her year

A liquidity event like this comes with real mechanics — coordinating the equity paperwork, setting up or updating trust structures, making sure the estate documents actually reflect a net worth that just changed order of magnitude. Our role is to run that machinery so it doesn't become Sarah's second job. For some families, that extends to the practical layer too — bill pay and day-to-day cash management, for instance, when it's useful to have one place where that's handled rather than one more thing on an already full plate. Our goal is to track the details closely to help minimize surprises.

Staying focused on the financial core

What we wouldn't do is weigh in on which private school to choose, or become involved in decisions that have nothing to do with her financial life. That's the model built by dedicated, single-family offices — a team assembled to run every part of a family's life,from travel logistics to household staffing. It's a real and valuable model for some families. It's not ours.

Our work is to be the steady, coordinated hand on the financial and structural decisions that carry real weight — the equity, the tax, the cash flow, the trusts, the estate plan, the coordination across every professional touching those pieces. That's the core, and we go deep there.

That's the balance we aim for: sophistication without someone running your life. Depth where the stakes are real. Restraint everywhere else.

When does a family need a family office instead of a financial advisor?

Many families who start searching for a family office actually need coordinated planning — investment, tax, and estate decisions managed together rather than by separate professionals who never speak. A dedicated single-family office tends to fit a narrower set of situations, usually when a family wants every aspect of daily life managed, not just the financial core.

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Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are offered only to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure.

The information provided is for informational purposes only and is not intended as investment, tax, or legal advice. The content is based on sources believed to be reliable, and reasonable due diligence is conducted; however, accuracy and completeness cannot be guaranteed and information is subject to change without notice. Past performance is no guarantee of future returns. Investing involves risk, including possible loss of principal.

Readers should carefully consider their own investment objectives, financial situation, and risk tolerance before making any investment decision, and should not rely solely on any communication, chart, or illustration as the basis for action. No investment or tax advice is provided unless a client service agreement is in place with Brickley Wealth Management or Brickley & Company.

Brickley Wealth Management does not provide legal advice. Please consult your investment, tax, or legal professional regarding your individual circumstances. For additional information about our firm, our services, and our advisers, please refer to our latest Form ADV, Part 2 Brochures, and Client Relationship Summary. Our Privacy Notice is also available for review.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

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Key Financial Terms 
Related to this Post:

This is some text inside of a div block.

Family Office

A private advisory firm serving one affluent family, managing investments, tax strategy, estate planning, and more in-house.
This is some text inside of a div block.

Multi-Family Office

A firm that offers comprehensive financial and tax services to several high-net-worth families, often with shared infrastructure.
This is some text inside of a div block.

Lifetime Gift Exemption

The total amount an individual can gift over their lifetime without incurring federal gift tax, above the annual exclusion.
This is some text inside of a div block.

Estate Planning

Preparing for the transfer of assets, typically to heirs, in a tax-efficient and legally sound manner.

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Contact@brickleywealth.com
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Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are offered only to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure.

The information provided is for informational purposes only and is not intended as investment, tax, or legal advice. The content is based on sources believed to be reliable, and reasonable due diligence is conducted; however, accuracy and completeness cannot be guaranteed and information is subject to change without notice. Past performance is no guarantee of future returns. Investing involves risk, including possible loss of principal.

Readers should carefully consider their own investment objectives, financial situation, and risk tolerance before making any investment decision, and should not rely solely on any communication, chart, or illustration as the basis for action. No investment or tax advice is provided unless a client service agreement is in place with Brickley Wealth Management or Brickley & Company.

Brickley Wealth Management does not provide legal advice. Please consult your investment, tax, or legal professional regarding your individual circumstances. For additional information about our firm, our services, and our advisers, please refer to our latest Form ADV, Part 2 Brochures, and Client Relationship Summary. Our Privacy Notice is also available for review.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

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