The ILS World private client team enjoys working with families and their advisers to create a family charter - often the starting point for succession and estate planning.
A charter or constitution is a vehicle to give all interested parties a voice and collectively they work together to set out their long-term goals and vision. The process of creating a charter is based on many, in-depth discussions and debates – consideration is given to what can often be complex and challenging issues.
What does a family charter cover?
A family charter may cover:
- A definition of the family i.e. does it include spouses, stepchildren, adopted children?
- The purpose of the business? i.e. wealth generation, employment for family members, philanthropy?
- Employment policy for family members
- Experience and qualifications to sit on the Board
- Communication policy between family and Board
- How to deal with conflict?
- The appeal of family charters has grown as families have become increasingly more complex, blended, extended and geographically separated.
To add into the mix some entrepreneurs who are still creating wealth may find it difficult to hand over control while a patriarch may want to maintain influence "from the grave". Often not all beneficiaries are directly involved in the family business while others will have very strong views on philanthropy and social advocacy.
It is not a legally binding document but charters often lead to the introduction of more formal documents such as a Shareholders Agreement, Pre and Post-Nuptial Agreements.
Why Choose ILS World
As a leading provider of independent fiduciary services to professional advisors, corporate groups, private and digital clients, we are here to help achieve your financial goals.
At ILS World, we don’t restrict ourselves, we like to go beyond the borders. That is why we operate globally. You will find our offices in Isle of Man, British Virgin Islands, Hong Kong, and Portugal.