Generally, a big wealth manager won't be able to solve this kind of personal request. So the wealth management firm will subcontract with Luxury Attache, allowing both the firm and the family office to spend more time handling important activities rather than dickering with celebrities. Many wealth managers maintain a list of preferred provider personal services. Fidelity, for example, has access to a network of third parties that provide some of these personal services, though the company won't discuss them specifically.

Schwab, meanwhile, doesn't do anything personal like dog walking or arranging trips to sporting events, Sallenave says. Instead, she says the company's family office clients, who usually establish a relationship by using its custody services, are primarily interested in fundamental operational support as well as the professional development of office personnel.

Although family offices increasingly look to the wealth management divisions of big national full-service firms to help satisfy clients, there are a few core activities these offices tend to want to keep to themselves, says Harrington.

"They will usually keep the tax piece in-house," she says, "because many of the people who work in family offices and multi-family offices have a tax background."

Sullivan believes outsourcing can lead to greater productivity at family offices by letting them focus on what they're good at-investment management, financial planning, estate planning and tax planning. These core services are vital for the family office, say wealth management experts. Tax planning is so important, Harrington notes, that if a family office lacks the expertise, it will often find CPAs to put on staff.

Though the costs of running a family office are a big factor in outsourcing, Sullivan believes technology also has had an influence on the trend. Better technology allows new advisors to set up their offices quickly. They can then, he says, concentrate on core competencies while farming out functions such as portfolio measurement, trust accounting and Web site creation.

So how does one decide what can be outsourced and what must be kept in house?

Orazem says the key to finding the right balance for a family office isn't one function or service. It is the quality of the relationship. Numerous services can be outsourced, he believes, but the family office must always "remain the primary financial advisor."

Sidebar:

Family Offices Focus On Services, Survival
Family offices, trying to survive in difficult times, are increasingly receiving requests for new services, according to a recent survey.