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Family governance can be simple or elaborate, and even if it is not formally written down, most families have their own ways of coming to a decision. For example, how your family decides on the next holiday destination is family governance. Why should you care about family governance? Governance is informal in many cases, which typically works fine for smaller families with moderate wealth management needs. However, some families — especially entrepreneurial families or families with multiple active generations — require a formalized process. When there is a business, extreme wealth or some other legacy to be passed on, some families feel the need to be more systematic to guarantee just and equitable treatment of all family members and to ensure long term rewards for future generations. Why is family governance relevant in the real estate investment space? Real estate investments are essentially like a business. The complexity of your business depends on the scale of your investments, and it will have an effect on your family. Consider what would happen if you got hit by a bus tomorrow.
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