What does a virtual family office cost?

The layers of cost

A virtual family office is a coordination model, not a single service. Cost accumulates across at least three distinct relationships, and how those costs are quoted — and by whom — varies by provider.

The coordinating advisor. A lead advisor — typically an independent registered investment adviser — takes responsibility for investment oversight and the overall planning relationship. This advisor charges a fee for their services. The fee may be based on assets under management, a flat retainer, or some combination. This is usually the most visible cost, but it is not the only one.

The specialist professionals. A VFO arrangement often coordinates with independent CPAs, estate attorneys, insurance specialists, and other professionals. These professionals have their own billing relationships — hourly, retainer, or project-based — separate from the coordinating advisor's fee. The coordinating advisor does not typically set or collect these fees. Ask each professional directly what they charge and whether any referral relationship exists between them and the coordinating advisor.¹

Technology and platform costs. Some providers use a consolidated reporting platform, document vault, or planning portal and may pass part of that cost to clients. This cost is sometimes embedded in the advisory fee and sometimes billed separately. Ask whether any platform cost exists and what you receive in exchange for it.

Common fee structures for the coordinating advisor

Assets under management (AUM). The advisor charges a percentage of the assets they manage for you. This structure ties the advisor's fee to the value of your portfolio. Ask exactly which assets are included in the calculation — managed accounts only, or all assets the advisor touches in some way — and whether the rate changes at different asset thresholds. Ask how the fee is calculated if assets fluctuate significantly.

Flat retainer. The advisor charges a fixed annual or quarterly fee for a defined scope of services. This structure is common when planning coordination, not just investment management, is the primary service. Ask precisely what is included in the retainer scope and what triggers additional billing. A retainer that covers investment management, tax-return coordination, estate-plan review, and quarterly family meetings is a different relationship than one that covers investment management alone.

Hybrid arrangements. Some advisors combine an AUM fee for investment management with a retainer for planning and coordination services. Evaluate the total cost across both components — the combination may be appropriate for the scope of work but should be compared as a whole against alternatives.

Project or hourly billing. Some specialists — and occasionally lead advisors — bill by the hour or per project for defined engagements. This structure is common for estate attorneys and CPAs. Ask whether your anticipated needs fit a defined-scope project or whether the work is likely to be open-ended.

What is typically bundled and what is not

There is no industry standard for what "virtual family office services" includes. One provider's retainer covers estate-plan review, tax preparation coordination, cash-flow planning, and investment management; another's covers investment management and a quarterly review call. Ask for a written description of what is included in your specific engagement before you sign anything.²

Services that are often not included in the coordinating advisor's fee, and which you may need to budget separately for, include: tax return preparation, estate document drafting and revision, trust administration, insurance policy reviews by a licensed specialist, philanthropic administration, and real estate or business asset management. Ask which of these apply to your situation and who would be responsible for each — and at what additional cost.

A scenario to think through

Suppose a family has $8 million in investable assets and engages a coordinating advisor at 0.75% annually. That advisory fee is $60,000 per year on that asset base (illustrative — your fee will be different). If the family also works with an outside CPA on a $12,000 annual retainer and an estate attorney billing $8,000 per year in planning and document revision, total advisory and professional costs are $80,000 annually. Whether that total is appropriate depends on the complexity of the family's situation, what services that total actually includes, and what alternatives they have evaluated. The point is not the specific numbers but the discipline of adding them up before deciding.

Families with a business interest, an expected liquidity event, or multi-generational planning questions typically find the coordination costs higher — and the value of clear responsibility among professionals proportionally greater.

Questions to ask before you engage

Ask every prospective provider to give you a written summary of all fees you would pay, including both their direct fees and any fees from third parties they refer you to or coordinate with. Ask whether they receive any compensation — referral fees, revenue sharing, or commissions — from any of the professionals they introduce you to, and require written disclosure of any such arrangements.¹ Ask what happens to your fee if assets change significantly or if you reduce the scope of services.

The field guide on this site walks through a complete set of questions about how a virtual family office team is organized — fee questions are part of that, but so are responsibility, continuity, and decision-authority questions that are just as important.

Before engaging any investment professional, review their background through SEC's Investment Adviser Public Disclosure tool or FINRA BrokerCheck.³ Fee disclosures are also available in the advisor's Form ADV Part 2, which they are required to provide before you engage them and which is publicly available through the SEC's IAPD system.

Sources & further reading

Source pages reviewed September 2026. Fee examples in this guide are illustrative only and do not represent any specific provider's fees.

1. Investor.gov: Understanding investment fees
2. Investor.gov: Working with an investment professional
3. Investor.gov: Check your investment professional (SEC / FINRA lookup)
4. SEC: Investment Adviser Public Disclosure (IAPD)
5. FINRA: Working with an investment professional
6. U.S. Bank: Is a virtual family office right for you?