With the aid of circumspect family governance, a common understanding can be reached amongst the members – and that engenders stability.
The views on how a family fortune is to be deployed, used and passed on are as varied as the family members themselves. "Family governance” has the effect of encouraging family members to address consciously and constructively the many issues associated with family leadership and wealth management. For example:
- In which direction do we as a family wish to develop?
- What expectations exist in terms of the family fortune?
- Which values do we, as a family, wish to embrace and perpetuate?
- How should new family members be integrated into the bigger picture?
As illustrated in our chart below, family governance represents a framework for a value-oriented approach to family and wealth management. Family governance sows the seeds for transgenerational competence in the way wealth is handled. That lays the essential cornerstone for material security.