What is family governance?

Family governance plays an important role in the preparatory phase of establishing a foundation. It is crucial to the success or failure of the foundation, precisely because the foundation is structured as ownerless assets.

Family governance is about bringing together family members from different generations to discuss upcoming issues relating to the family assets and succession planning, to develop a preventive strategy for the future and thus to bring about a comprehensive and results-oriented solution.

After all, simply setting up a foundation does not necessarily mean that family goals will be successfully achieved. In order for a foundation to implement family values and goals, it is important that the family defines these values and goals before the foundation is established and that a decision on the direction of the foundation is made that is accepted by all family members. The foundation should serve to achieve a specific family goal and not be an attempt to define this goal with the help of the establishment of a foundation.

There are many reasons for establishing a foundation. In addition to succession and estate planning, these may include the promotion of charitable causes, the long-term preservation of family assets and protection against fragmentation, the support and care of family members, and succession in a family business.