A family charter (or family constitution) is the founding document of family governance: values, governance structure, decision mechanisms and wealth-distribution rules. It is not legally binding, yet it is the institutional cornerstone of succession — research consistently attributes “shirtsleeves to shirtsleeves in three generations” to governance failure more than investment loss.
Core clause checklist
- Mission and values: why the family exists and what the wealth is for.
- Membership and rights: who belongs and how rights are defined.
- Governance: family assembly, family council and management roles.
- Decision-making: voting rules for major matters and deadlock resolution.
- Wealth distribution: dividend principles, education and healthcare support, venture funding.
- Exit and disputes: member exit mechanisms and mediation.
Five-step drafting process
Step 1, family interviews capturing G1, G2 and G3 expectations. Step 2, drafting by the family council or an external adviser. Step 3, at least one all-member revision round. Step 4, a signing ceremony — the signing itself is succession education. Step 5, annual review, revising every 1–3 years as the family evolves.
Three notes for Chinese families
First, cross-border tax: trust arrangements must comply with the 2026 offshore trust rules (uniform 20% rate). Second, separate corporate equity from family entitlements in the design. Third, legal wording in Chinese — bilingual versions are recommended.
Industry data
China’s wealth management market reached RMB 179.33 trillion in 2025, second globally (Sina Finance, 2026).
The global family office market was US$20.6bn in 2025, projected US$38.1bn by 2035 (Research Nester, 2025).
The market is projected to grow at a 7.1% CAGR from 2026 to 2035 (Research Nester).
Hong Kong hosted 3,380+ single family offices by end-2025 (InvestHK / Deloitte).
Cross-border wealth in Hong Kong is projected to grow 9% a year 2025–2030, first globally (BCG, 2026).
References
Related Guides
Explore the Complete Guide and the Tai Chi philanthropy case on the Institute\u2019s site, or see the FAQ.