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The benefits of a family charter
The International Family Offices Journal
Vol. 6 - Iss. 2 pp. 11–16
Dec 2021
The greatest transfer of wealth in modern history is underway. Families that are unprepared for this transition of value and power expose themselves to risks that can compromise decades of enterprise and hard work. In the author's experience, informal family governance structures that once might have been appropriate may now need review and reform to ensure they are fit for a future where traditional leaders have less influence and the family may have more wealth consumers than generators. Developing a family charter (also known as a family constitution) can be an important part of this process. This article will attempt to define a family charter, explain how it may benefit a family, provide some suggestions on the consultation process that should precede the drafting of a family charter and give some examples of the types of matters that a family charter might address.