Why fiduciaries fail family-controlled enterprises - the problem of trustee succession
The International Family Offices Journal
Vol. 2 - Iss. 2 pp. 26–30
Richard Narva looks at the challenging role that trustees have. He compares the duties of a fiduciary and the traits of a salesman, not very flattering to the trustees! He worries about the conflict between the legalistic trustee roles and the culture and values of the family: "[F]iduciaries must understand that when family life is controlled by legal documents a displacement of the culture of the family of origin occurs, as the legal values . . . take precedence over the historic core values of the family." He closes with the inevitable conflicts of interests in the investment role. This thoughtful article contains a host of alerts.