Family Council
A family council is a group of family members that coordinates governance, communication, and long-term priorities related to wealth and family matters.
Allocator relevance: Can influence mandate constraints and decision timelines, especially when the principal delegates oversight to the council.
Expanded Definition
Family councils are designed to formalize family participation and reduce ad hoc decision-making. Their scope varies widely: some councils focus on education, philanthropy, and succession; others actively participate in investment policy, risk posture, and major allocation decisions.
For allocators and managers, understanding whether a family council exists—and what it controls—helps predict how decisions are made and who must be aligned.
How It Works in Practice
Councils meet on a defined cadence, set agendas, and coordinate with the family office leadership. They may approve broad policy, oversee governance documents, or weigh in on large or controversial decisions.
Decision Authority and Governance
Councils can have formal voting power or purely advisory influence. Governance mapping should distinguish between “policy influence” and “transaction approval,” as many councils steer direction without signing individual deals.
Common Misconceptions
- A family council is the same as an investment committee.
- Council involvement always slows decisions.
- All councils have formal authority.
Key Takeaways
- Council scope determines influence on investment decisions.
- Important for predicting decision cadence and stakeholder alignment.
- Works best when roles are clearly defined.