If you own a small business or have spent a lifetime creating a nest egg to ensure your loved ones are well taken care of, then you need a plan to safeguard the legacy of all your hard work.
Family governance and family business succession are a necessity for individuals and business owners. This creates concrete management and financial solutions for generations to come. Best crafted with an expert in wealth management (Dallas based Saddock Wealth is an ideal partner in this field). On the other hand, a family governance plan eliminates unanswered questions and potential conflicts. Essentially, it lays the foundation for generations of success.
What is Family Governance?
At its simplest definition, family governance is a thought-out and well-defined framework for decision making and responsibility among family members based on a shared purpose, mission, and/or values. For instance, it defines roles for wealth or business management and outline how decisions should be made. Additionally, family governance can also set out mechanisms for major moves in the future, such as selling a business or assets.
What Are the Benefits of Family Governance?
Family governance has many benefits for individuals who want to preserve their legacy in the most beneficial way possible for all family members and loved ones involved. Furthermore, there are a handful of benefits to family governance and family business succession planning.
These benefits include the following below:
- It eliminates family conflicts. You won’t have to worry about years of conflicts or quarrels among your loved ones about how to handle your business and wealth. A solid plan can ensure no lasting discord, as all your wishes will be perfectly clear.
- It shares your wealth of knowledge. After decades of work, you’re an expert in your business and wealth management. Family governance allows you to share this information and ingrain this knowledge to future generations.
- It protects your loved ones. With family governance in place, you can ensure that all distribution of assets is fair and accounted for while minimizing taxes or any financial obstacles or setbacks.
- It maintains your legacy. Your business and wealth can thrive well into the future once a smart family governance plan is implemented.
What Should You Consider When It Comes to Family Governance?
Depending on your individual financial situation, a family governance framework can address a wide array of points and issues.
A sample of what a family governance plan can entail includes the following:
- The different roles and rights of individual family members when it comes to managing your business or wealth.
- An outline of including family members and loved ones when it comes to business or wealth-related discussions.
- A plan for family employment, compensation, or distributions of assets.
- An outline of the values and goals of a business and the mechanisms for how the governance of a business should work.
- An overview of the succession process and how family members can sell or share interests.
- A formulation of a family council or other groups that will orchestrate business and wealth management.
- A guideline of how business decisions should be made.
Keep in mind that the above list is just a short and common collection of attributes that can be included in your eventual framework. A family governance services provider will work with you one-on-one to craft a specialized plan. Additionally, every plan is tailored for your family and your long-term goals.
Create the Best Family Governance with our Experts
Creating a family governance framework and/or family business succession plan is necessary for any business owner or individual who wants the best for their loved ones. Without a clear and concise guide to how your assets should be managed, you can potentially set the stage for family conflicts for decades ahead.
Therefore, having your wishes outlined before there is any strife or friction is the best way to ensure your legacy remains intact. This way, your loved ones will avoid any unintended pain from strained family dynamics and confusion.
Build a Family Governance Framework with our Family Wealth Advisors
This is where Saddock Wealth can help. We are adept at all aspects of family governance and succession planning. Our wealth management professionals can help you craft a framework that ensures all your wishes are accounted for and your loved ones. Meanwhile, this helps to ensure they are well protected for the indefinite future.
Let’s discuss how to ensure your hard work benefits the people you love best. With Saddock Wealth as your guide, you can have peace of mind that your legacy grows into a successful future for everyone who matters most to you.