Family Governance – Your Family Strategy
The influence of family-related factors on the preservation of assets over generations is not to be underestimated and must either be taken into consideration or raised as an issue to be addressed:
- Definition of leading roles for individual or multiple family members and consolidation of their position within the family
- Development of comprehension of the necessity of preserving capital for future generations
- Prevention of asset stripping due to the varying interests of children, various generations, inheritance disputes etc.
- Protection and active preservation of family traditions
- Realisation of charitable objectives, philantropy
- Common definition of values within the family and with regard to the environment
- Definition of the roles of external advisers within the family
The next generation should be actively involved in the family office process at an early stage.
"The next generation should be actively involved in the family office process at an early stage. We state that the significance of understanding the necessity of preserving assets for children and grandchildren is often underestimated."
Thomas Borghardt, Member of the Board of Directors
Solution approaches for sensitive challenges
These and similar issues and the resulting conflict areas can be governed by the creation of a family constitution. In a similar way to corporate governance within a company, this family governance sets rules for the often complicated family relationships.
The family office addresses these issues and sensitive challenges: it helps you to structure the tax, legal and family-related processes and provide you with relevant solutions – with the added support of lawyers, tax advisers and auditors.
