Generational resilience through the integration of governance into structure
The International Family Offices Journal
Vol. 5 - Iss. 1 pp. 42–49
Back to the pandemic - a topic on all our minds - we have an article by Carly Doshi, William Kambas and Michael Schwartz. The authors advocate for ?the incorporation of resiliency planning into family systems, concurring with other recent scholarship on resiliency as a goal of family governance work?. They expand this further, ?by mapping family resiliency to a technical application, including components of a legal advisory framework and against recent cases where this has proved relevant?. Faced with instability and unpredictability, families can weather the storm by creating good structures during calm times in order to brace for the rough times. The authors include a focus on the importance of having the appropriate legal documents, an aspect that is often ignored in writings about governance. Their helpful advice includes: For a resilient system able to withstand a crisis, legal documents are as important as the codification of the family governance plan. Extending the family governance work into the legal documents takes some effort and creativity, but the resulting system is most likely to address a family's own values, organisation, and communication - and therefore provide the greatest chance of resilience. They give detailed, helpful comments on the effective use of trusts, partnerships and LLCs.