What Are Multi-Generational Families – and why does it matter for family offices?
In the context of family offices, the term ‘multi-generational family’ describes a household or extended family group spanning two or more generations. These families are often unified by shared wealth, businesses, or other significant financial assets. Such families often comprise grandparents, parents, children, and occasionally even great-grandchildren, all of whom may have an interest in the family’s collective wealth or enterprises. The multi-generational nature of such families introduces a number of complexities in managing their collective wealth, the governance of their affairs, and the planning of their legacy. In order to address these challenges, family offices have become an essential tool.
A defining characteristic of multi-generational families is their long-term approach to wealth management. The focus is frequently extended beyond the immediate generation to encompass the preservation and growth of assets for future descendants. This perspective necessitates implementing strategic planning in domains such as estate management, establishing trusts, and creating governance structures that ensure clarity and harmony among family members. It is challenging to balance the interests and priorities of different generations, but it is crucial for maintaining unity and stability within the family.
Family offices are of pivotal importance in supporting multi-generational families. They provide bespoke solutions for the administration of shared assets, the supervision of investments and the implementation of tax-efficient strategies that are aligned with the family’s objectives. Furthermore, family offices frequently assist in designing and enforcing governance frameworks, such as family constitutions or councils, to facilitate decision-making and resolve conflicts. These frameworks are especially crucial for managing disagreements arising from differing priorities or values between older and younger generations.
Philanthropy is another domain where multi-generational families frequently engage deeply. Family offices often coordinate charitable activities, ensuring that giving aligns with the family’s shared values while involving members of all generations. This approach not only strengthens the family’s cohesion but also