INSIGHT

Why Strong Governance Matters for Your Family Office 

Kris Marney • December 12, 2025

Services: Family Office Services

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You’ve built significant wealth. You’ve created a family office to manage it. But have you established the governance framework needed to protect it? 

Many wealthy families assume that hiring qualified staff and setting up the right legal structures is enough. They quickly discover it’s not. Without clear governance, even the most sophisticated family offices face internal conflicts, strategic drift, and succession challenges that can fracture family relationships and erode wealth across generations. 

Strong governance isn’t about adding bureaucracy. It’s about creating clarity, alignment, and sustainability for your family’s financial future. This article will explore what effective family office governance looks like, why it matters, and how to build a framework that works for your family. 

Understanding Family Office Governance 

Family office governance is your roadmap for decision-making. It defines who makes decisions, how those decisions get made, and what principles guide them. 

Think of governance as the operating system for your family office. It coordinates all the moving parts—investment strategies, tax planning, philanthropic initiatives, and succession plans—into a coherent whole that serves your family’s shared vision. 

Your governance framework should address several key questions. Who has authority over investment decisions? How will you handle conflicts between family members? What happens when the next generation wants to take the family in a different direction? How will you balance individual needs with collective goals? 

“Without governance there is a lack of clear roles and decision making protocols which can lead to communication break downs and lack of transparency.” Kris Marney – Partner, Advisory and Family Office Services Leader 

The Core Elements of Effective Governance 

A robust governance structure rests on several foundational elements that work together to keep your family office running smoothly. 

Clear Decision-Making Authority 

Your framework must specify who makes what decisions. Does the family patriarch retain final say on all major investments? Do adult children have voting rights? What role do non-family professionals play in strategic decisions? 

Ambiguity here creates paralysis. When everyone thinks someone else should be making a decision, nothing happens. When multiple people think they have authority over the same area, conflict erupts. 
 

Defined Roles and Responsibilities 

Every family member involved in the family office needs a clear understanding of their role. Some family members serve on investment committees. Others focus on philanthropic initiatives. Still others may have no formal role but expect regular updates on family assets. Document these roles explicitly. Write them down. Review them annually.  

Transparent Communication Channels 

You can’t govern effectively without good information flow. Establish regular family meetings, reporting schedules, and communication protocols that keep everyone informed without overwhelming them with details. Different family members need different levels of information. Your governance structure should account for this by creating tiered communication systems. 

Succession Planning 

Your governance framework must address how leadership transitions from one generation to the next. This includes not just who takes over, but how you prepare them for that responsibility. 

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Common Governance Pitfalls to Avoid 

Many family offices stumble over the same obstacles. You can avoid them by staying alert to these common mistakes. 

Static Governance Models 

Your family changes. Your wealth grows or contracts. Market conditions shift. Your governance framework must evolve alongside these changes. Review your governance structure every two to three years at minimum. After major family events—marriages, divorces, births, deaths—revisit it sooner.  

Confusing Family and Business Roles 

Family members often wear multiple hats. Someone might be a son, a shareholder, and an employee of a family business simultaneously. Your governance framework needs to distinguish clearly between these roles and prevent conflicts of interest. 

Avoiding Difficult Conversations 

Governance breaks down when families postpone hard discussions. You need to address potential conflicts head-on—before they become actual conflicts. This means having frank conversations about money, values, competence, and family dynamics. It’s uncomfortable. It’s also necessary. 

Inadequate Professional Support 

Some families try to handle complex governance issues without proper guidance. This often leads to gaps in their framework that create problems later. You need the right advisors helping you build and maintain your governance structure. 

Building Your Governance Framework 

Creating effective governance starts with honest assessment. Where does your family office stand today? What works well? What causes friction or confusion? 

• Gather input from all stakeholders. Family members have different perspectives based on their generation, involvement level, and relationship to family wealth. These perspectives all matter. 
• Define your family’s shared purpose and values. What does your family stand for? What do you want your wealth to accomplish? Your governance structure should reflect and reinforce these core principles. 
• Document everything. Verbal agreements fail when memories differ or circumstances change. Put your governance policies, decision-making processes, and conflict resolution procedures in writing. 
• Start simple and add complexity as needed. You don’t need a corporate-style governance structure if you’re a small family with straightforward needs. But you should build a framework that can scale as your family and assets grow. 

How BPM Supports Your Family Office Governance 

At BPM, we understand that every family office is unique. Your governance needs depend on your family dynamics, wealth complexity, and long-term objectives. We work alongside you to design governance frameworks that bring clarity without rigidity, structure without bureaucracy. 

Our team helps you facilitate the difficult conversations that strong governance requires. We bring an outside perspective that can help family members hear each other more clearly and find common ground on contentious issues. We’ve seen what works—and what doesn’t—across numerous family offices, and we apply those insights to your specific situation. To discuss how we can help you build a framework that protects your wealth and preserves family harmony for generations to come, contact us.