Family Constitution Guide (US)

Most families do not lose wealth because of markets. They lose it because no one agreed on what the money is for. A family constitution turns values into rules so decisions stop turning into fights.

Priority consideration: decide how your family will make decisions before the next high-stakes decision arrives.

Why it matters: without a written framework, each generation makes up new rules. That is where trust erodes and capital fragments.

Key takeaways

• A constitution sets decision rules, not legal terms.
• Governance beats good intentions when conflict shows up.
• It is the bridge between values and execution.

What a family constitution actually is

It is not legal paperwork. It is a written agreement about how your family will make decisions, handle conflict, and define purpose. It sits above the legal estate plan and makes it usable.

What it should include

1. Values and purpose. What the money is for, what it is not for.

2. Decision rights. Who votes on major choices, and what qualifies as "major."

3. Governance rhythm. When the family meets, who sets the agenda, how updates are shared.

4. Conflict rules. How disagreements are handled before they become legal conflicts.

5. Next-generation expectations. Education, involvement, and the path into responsibility.

Decision checklist

• Can every family member explain the purpose in one sentence?
• Are decision rights explicit, or implied?
• Is there a meeting cadence that would survive a busy year?
• Do you have a conflict rule beyond "we will talk"?
• Is the next generation clear on expectations and timing?

Questions to ask your advisor

• What governance gaps tend to create friction in families like ours?
• How should we sequence this with estate plan updates?
• Which sections should be reviewed annually vs. every few years?

Related tools

• Family Constitution Starter
• Family Wealth

Next step

Start the Family Constitution Starter for a 10-minute governance brief, then explore the Family Office Blueprint to expand it into a full planning system.

Compliance note

This guide is for planning and coordination only. It does not provide legal or investment advice. Confirm legal document updates with a qualified attorney.

Sources

• Deutsche Wealth: Family governance overview https://www.deutschewealth.com/en/our-capabilities/sophisticated-solutions/family-office/family-governance.html