Mature and wealthy senior business woman with a middle-aged daughter having a calm conversation in a premium city outdoor locations about family business

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The next generation of family office leaders is likely to use more debt, invest in more alternatives and focus on different philanthropies, according to new studies.

As family offices prepare for a sweeping generational transfer, with baby boomers and older generations handing over the reins to Gen Xers and millennials, their investments and priorities are set to change. The shifts could have profound implications for the more than $5 trillion in assets managed by family offices.

According to a survey by Bank of America, a quarter of family offices have had a generational transition in the past decade and more than a quarter have principals (chief wealth holders) who are baby boomers.

Preparing the next generation is often the top worry and mission for family offices.…