A family’s legacy – or wishes to create a legacy – are as unique as each family itself. There can be varied ideas within the family unit as well, depending on the diverse values, generations and cultures that make up your family.
Does your family know what legacy they want to leave behind? Have you discussed what you stand for in a formal – even informal – sense? Do you have established family values?
Many family offices are started without these discussions. It may seem to be less of a priority than areas like structures and tax processes. However, at the end of the day, legacy goals and family values guide families and their businesses. And where they are formalised and communicated, decision-making processes can be streamlined and simplified.
Many families in business start from humble beginnings, have an idea, start a small business, work hard, pour all profits into the business and, over time, create a very successful family business. The first diversified investment is often property or business premises. At this stage, there is often no real long-term planning for the family and future decisions are made on a more reactive basis and less driven by what the family legacy is.
What are the benefits of a family legacy values?
- They provide clear direction.
- Gives your family an identity and family members a sense of belonging.
- Opens communication between family members.
- First step in setting up your family governance structure.
- Invaluable when you need to make a quick decision, avoids an emotional reaction.
- Set boundaries for the family.
How do we decide on our family values?
The most effective family values are the ones that aren’t just a word or two, they include what the word means to your family. A great example is a family business had ‘community’ as their family value. When Sydney went into its initial lockdown, the business immediately set up a pop up store to deliver essentials to the local community and keep locals in jobs. The family value meant something to the family, so they knew the next steps they needed to take to make it a practical reality. Family Office and investing for the future requires the same approach.
Another great example of a Family Office value that has meaning to a family is ‘Each person matters’. The family have even stated what this value means to them and that is all generations and all family members matter and are taken into consideration and have a voice when decisions are made.
Be careful with values such as ‘honesty’, ‘integrity’ and ‘trustworthy’. They are a given in that this is how you expect all family members to behave. They can be used as family values but ensure you add what they mean to your family and the role they will create in creating your family legacy.
How can we assist in your family office start up?
The Grant Thornton Family Office teams works with families to unlock and establish family legacies and family values and ensure they live within the family and business. All of our discussions are guided by your family values, what is important to you and the values you want your family members to cherish and live by.
Ensure your family office is set up with the end goal in mind. We offer an obligation free initial meeting to discuss what the future looks like and a plan to get there.