Last Updated on 09/07/2025 by Carl-Peter Lehmann
What Is a Family Charter … A Tool for Legacy, Unity, and Generational Success
Wealth is more than money. It’s the story of a family … its values, sacrifices, beliefs, and ambitions. But when that story isn’t told clearly, even the most carefully built fortunes can become a source of division. Enter the Family Charter – a powerful, non-legal document that gives families a framework for managing their wealth, values, and vision across generations. In this piece, we unpack what a family charter is, why it matters (especially in the South African context), and how to go about creating one.
What Is a Family Charter?
A Family Charter (sometimes called a family constitution or family legacy document) is a written agreement that outlines a family’s shared values, purpose, approach to wealth, and governance structures. It is not a legal contract … but it is a living document that reflects the family’s collective voice and intentions. Where legal documents like wills, trust deeds, and shareholder agreements cover the what, a Family Charter covers the why and how. Think of it as the compass that guides the family through transitions, decisions, and generational growth.
Further Reading: The complete guide to estate planning in South Africa today
Why Is a Family Charter Important?
Many South African families are facing a “generational crossroads.” First-generation wealth creators are aging. Children and grandchildren are stepping into leadership, but often with different worldviews, lifestyles, or expectations.
Without a common framework, families risk:
- Disputes over business or trust distributions
- Misalignment of values and philanthropic goals
- Wealth dilution through poor financial habits
- Loss of purpose or legacy
A Family Charter promotes clarity, continuity, and cohesion. It ensures that the legacy you’ve built lives on — not just financially, but relationally and philosophically.
Further Reading: Understanding intergenerational wealth transfer and how to manage it effectively
What Should a Family Charter Include?
There’s no one-size-fits-all template. Each Family Charter should reflect the unique identity of the family it serves. But here are some core elements to consider:
1. Family Values and Vision
Start by identifying your family’s core values. These are the principles that underpin your decisions and purpose.
Questions to explore:
- What does wealth mean to us?
- What legacy do we want to leave?
- What principles guide how we earn, spend, save, and give?
Example:
A family from Paarl used their charter to enshrine values like entrepreneurship, humility, and education— values their grandfather lived by as a fruit farmer who later built a global export business. The family’s wealth was to “educate and better the lives of each member, but no child needed to drive around in a Ferarri” was the Grandfathers wish.
2. Mission or Purpose Statement
What is the role of the family wealth? Is it to provide financial security, fund new ventures, give back to society, or all three?
Tip: Keep this mission short, powerful, and aspirational. It should unite current and future generations.
3. Governance and Decision-Making
Define how family decisions will be made — especially those related to shared assets like trusts, businesses, or properties.
Common considerations:
- Will there be a family council?
- Who votes on investment decisions?
- How are trustees or directors selected?
- What happens when there’s a tie or dispute?
Example:
A Johannesburg family with three adult siblings used their charter to formalise a quarterly “family board meeting” to review the family trust, with rotating chairpersons and clear voting rules.
4. Roles, Responsibilities, and Expectations
Clarify expectations around family participation in the business, access to wealth, or leadership roles.
Questions to address:
- Can family members work in the business? If so, under what terms?
- Are there requirements for receiving distributions?
- What is the process for mentoring the next generation?
Example:
One family stated in their charter that any family member who wanted to work in the family business needed a university degree and two years’ experience outside the group.
5. Education and Next-Gen Development
A key role of a Family Charter is to prepare heirs to inherit, not just inherit assets.
Consider including:
- Financial literacy goals
- Internships in the family business
- Opportunities for philanthropy or entrepreneurship
This empowers younger family members with the skills, mindset, and context they need to steward the family legacy responsibly.
6. Philanthropy and Giving
Articulate how your family approaches giving. A shared philanthropic vision builds unity and purpose beyond profit.
Questions to explore:
- Do we tithe or donate a fixed percentage of income/returns?
- Are there causes we prioritise as a family?
- Do we want to create a family foundation?
7. Conflict Resolution
No family is immune to tension. Having a process in place to handle disagreements respectfully is essential.
Tip: Outline a process that may include mediation, arbitration, or involving an external advisor or family council.
How to Create a Family Charter
A Family Charter is best developed collaboratively — not dictated by a single person. Here’s how to get started:
- Facilitated Conversations: Work with a professional who understands family dynamics and estate planning. At Henceforward, we guide families through structured workshops to surface values, goals, and concerns.
- Drafting the Document: Once ideas are captured, the charter is drafted in plain language. This can be as simple as a two-page vision or a detailed framework.
- Review and Refresh: Families evolve. A good charter is revisited every few years to ensure it remains relevant and reflective of the family’s journey.
Is It Legally Binding?
No … and that’s its strength. A Family Charter works alongside legal documents (like wills, trust deeds, and shareholder agreements), offering emotional, ethical, and relational guidance that the law can’t provide.
Further Reading: The 10 biggest mistakes to avoid when transferring wealth to the next generation
What is a Family Charter FAQ
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1. What is a Family Charter?
A Family Charter is a non-binding document that outlines a family’s shared values, vision, and governance principles. It helps families align on how to manage wealth, make decisions, and preserve legacy across generations. It is also referred to as a family constitution or family legacy document.
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2. Why should South African families consider creating one?
With rising generational wealth transfers in South Africa, many families are facing potential misalignment of values and purpose. A Family Charter can help prevent disputes, preserve intergenerational harmony, and sustain family legacies beyond financial wealth.
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3. Who should be involved in creating a Family Charter
Ideally, all key family members — especially those who will inherit, lead, or manage shared assets. It’s crucial that the process is inclusive and collaborative, not top-down.
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4. Can we write our own Family Charter, or do we need help?
While it’s possible to draft your own, working with a qualified facilitator can make the process smoother and more impactful. At Henceforward, we guide families through workshops and help translate their intentions into a structured document that evolves with them
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5. How is this different from a will or trust deed?
Legal documents like wills and trusts outline what happens with your assets. A Family Charter addresses the why and how — the values behind those decisions, the long-term vision, and how the family agrees to operate together.
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6. Can a Family Charter help with family business succession?
Absolutely. A Family Charter is a powerful tool for aligning expectations around roles, leadership transitions, and future ownership. It helps reduce ambiguity and foster smoother succession planning.
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7. Does every family need a Family Charter?
Not necessarily — but for families with shared wealth, businesses, or trusts, it can be invaluable. It’s especially beneficial for high-net-worth families looking to ensure their legacy is preserved with intention and unity.
Final Thoughts – Legacy Beyond the Ledger
A Family Charter is not about control … it’s about continuity with purpose. It helps ensure your wealth builds, rather than breaks, the bonds between generations. At Henceforward, we believe that the best estate plans don’t just divide assets — they pass on meaning. If you’d like to begin the process or learn more, contact us for a confidential consultation.
Further Reading: Rethinking the generational wealth transfer process and how to secure your family’s legacy
Steven Hall
Steven is a CERTIFIED FINANCIAL PLANNER® and Director/Founding Partner at Henceforward, with over 20 years of experience in financial planning and wealth management. He has a deep interest in legacy planning and helping families articulate their values, vision, and goals across generations. Steven believes that a well-crafted family charter can be just as important as a will when it comes to building lasting financial legacies.
