Differences and Similarities in Family Governance and Educational Needs across Geographies

Abstract

Families across the globe increasingly realize the importance of organizing themselves to better manage all aspects of their wealth. In light of the 2008 crisis, this need has become particularly relevant. However, the way families organize themselves in one country may not be an appropriate fit for families in other countries. Since the family office has the longest developmental history in America, many countries look to the American prototype for family governance and family office creation. The generational histories of various cultures show the foundational differences in governance and educational needs across geographies and, consequentially, across cultures. Although the American approach to family governance and family office creation may serve as a good place to start, the American approach may not fit each global family’s particular needs. This article attempts to provide an overview of these multicultural generational backdrops, illuminate the need for more-customized education about governance, and facilitate a more-tailored governance creation process that fits the different needs of families based on their geographical and cultural heritage.

TOPICS: Wealth management, financial crises and financial market history, global