Family Governance
Aligning family and business governance with long-term goals to preserve wealth and foster positive family relationships.
Guiding Family Decisions and Responsibilities Across Generations
At Creative Planning we work with ultra-affluent families to establish a framework of rules, processes and decision-making structures to guide the smooth functioning of family dynamics and business decisions. It's a way to align family members around common goals, values and strategies to help ensure the family's wealth is preserved and passed down effectively. Meet with us to learn more about establishing governance for your family.
Reasons to Establish a Governance Structure
Clarify decision-making processes
Reduce family conflicts
Create a shared sense of responsibility
Create a sustainable legacy
Benefits of Family Governance
Implementing a robust family governance structure can offer significant advantages for ultra-affluent families by fostering long-term wealth preservation and helping ensure the next generation is well-prepared to manage the family's financial and business affairs. These structures often integrate family values and philanthropic goals into the wealth management process, creating a sustainable legacy. Creative Planning can provide a framework for thoughtful planning, enabling your family to adapt to changing circumstances while maintaining unity and a commitment to future generations.
Important Components for Setting Up a Family Governance Structure
- Family Values and Mission: Establish a clear set of values and a mission statement to guide family decisions and actions.
- Decision-Making Processes: Define how decisions will be made, including who has the authority and how disagreements will be resolved.
- Communication Protocols: Set up regular family meetings and communication channels to keep members informed and engaged.
- Family Constitution: Develop a formal document outlining the family’s governance policies, roles and responsibilities.
- Roles and Responsibilities: Clarify individual roles within the family business or wealth management activities, including succession planning.
- Conflict Resolution Mechanisms: Establish systems for addressing disputes constructively and maintaining family harmony.
- Education and Training: Ensure the next generation is equipped with the knowledge and skills to take on leadership roles.
- Philanthropic Strategy: Define how the family will approach giving, and align charitable activities with the family’s values.
- Periodic Review: Regularly evaluate and adjust the governance structure to meet the evolving needs of your family.
Let's Talk
Meet With an Advisor at a Location Near You
Creative Planning has advisors in just about every major metropolitan area. We look forward to getting to know you.
