Family governance is the system of rules, processes, and structures that help families make decisions about their wealth and keep their family aligned. Without family governance, families often face conflict and risk losing their wealth.

Here’s how to set up family governance for your family.

What Is Family Governance?

Family governance includes:

• Family mission statement and values
• Family council/assembly
• Decision-making processes
• Family education programs
• Conflict resolution processes
• Succession planning for family leadership

Why Is Family Governance Important?

1. **Preserves Family Harmony: Reduces conflict over wealth and decision-making.
2. **Aligns Family Around Shared Goals: Keeps everyone on the same page about the family’s mission and values.
3. **Prepares Next Generation: Educates heirs about wealth and responsibility.
4. **Preserves Wealth: Ensures wealth is managed responsibly for generations.

Key Elements of Family Governance

1. **Family Mission Statement: Defines the family’s values, mission, and long-term goals.
2. **Family Council: A group of family members who make decisions about the family’s wealth and affairs.
3. **Family Assembly: Regular meetings for all family members to communicate and learn.
4. **Family Constitution: A written document that outlines the family’s governance rules.
5. **Family Education Programs: Educates family members about wealth, investing, and responsibility.
6. **Conflict Resolution Process: A process for resolving family conflicts.

Element	Purpose
Family Mission Statement	Define values, mission, goals
Family Council	Make decisions
Family Assembly	Communicate, learn
Family Constitution	Written rules
Education Programs	Prepare next gen
Conflict Resolution	Resolve disputes

How to Set Up Family Governance

1. **Start with a Family Mission Statement: Gather family members to define your values and mission.
2. **Create a Family Council: Choose family members to serve on the council.
3. **Hold Regular Family Meetings: Meet at least annually, more often if needed.
4. **Document Everything: Write down your mission, rules, and processes in a family constitution.
5. **Educate Family Members: Provide education about wealth, investing, and responsibility.
6. **Review and Adjust: Review your family governance regularly and adjust as needed.

Frequently Asked Questions

When should we start family governance?

Start early—even if your family is just starting to build wealth!

Do we need a family office for family governance?

No—but a family office can help facilitate it.

What if family members don’t agree?

Use a neutral mediator and focus on shared values.

Final Thoughts

Family governance is key to preserving your family’s wealth and harmony for generations. Start today!