Spanning the generations
Among ultra-high-net-worth families and family offices, the topic of governance often comes up. While the concept of governance, and the issues associated with it, is widely understood in a business setting, its significance can be more difficult to envision for these families, their various enterprises and holdings.
Governance provides the framework in which roles, policies, processes, and controls needed to guide decisions can be established, monitored, and modified to attain goals and objectives. Ultra-high-net-worth families have many common questions when considering how to address family governance. This article discusses:
- What family governance is, why it’s important, and benefits for these families.
- Challenges to developing and implementing a governance structure.
- Components within a governance structure for families.
- Outside boards, trustees, and important distinctions in these roles.
- The role of an existing family office.
- How to get started and monitor effectiveness.