According to a study conducted by Boston wealth advisory firm, Federal Street Advisors, a family governance structure is the best way to ensure that wealth is preserved for future generations. Families may benefit from creating a family council that will write a formal mission statement, document family history, and hold educational events. The mission statement allows a family to acknowledge its goals and establish a code of conduct based on its core values. Occasionally, the family council may find it helpful and prudent to bring in an impartial outsider to help resolve conflicts.
For more information on family governance structures, see Karen De Masters, Family Governance Key to Wealth Preservation, Study Says, PWinsider, Dec. 8, 2011.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.
