Family Governance in Family Offices #
Family governance refers to the set of systems, processes, and structures by which family members collectively make decisions about shared assets, legacy, and succession. For family offices, governance frameworks are vital for maintaining unity, clarifying roles, resolving conflicts, and guiding stewardship across generations.1 Effective governance combines formal tools—such as constitutions, councils, and regular meetings—with informal efforts to promote dialogue, values transmission, and shared purpose.2
Key Components of Family Governance #
- Family Assembly / Council: Forums for family members to address critical issues, communicate openly, and update on shared business, philanthropy, and historical legacy.3
- Family Constitution / Charter: Documents codifying the family’s values, mission, decision protocols, conflict resolution strategies, and succession planning.4
- Decision-Making Framework: Where to delegate authority (e.g., between family council, professionals, or board) and how to record and review key decisions.5
- Family Meetings: Used to facilitate transitions, foster education, share family history, set goals, and assign responsibilities.6
Governance systems evolve as family dynamics, business interests, and generational complexity change. Periodic review and adaptation are critical to keeping frameworks relevant.7
Best Practices for Family Governance #
- Encourage broad participation from all generations
- Document values, mission, and protocols in accessible formats
- Integrate education on financial matters and governance skills into regular sessions
- Leverage professional advisors for independent perspective on decision models
- Use both formal (councils, charters) and informal (meetings, legacy stories) governance strategies
- Review governance structures at key transition points (e.g., generational handover, business sale)
Strong family governance fosters strategic unity, supports succession, and reduces conflict, thus enabling families to preserve their legacy and successfully steward their wealth.8
