A family constitution is a written document setting out how a family makes decisions about shared wealth: who participates, how disagreements are resolved, what the money is intended for, and what happens when circumstances change. It is not legally binding. Its force comes from having been written together rather than imposed.
A constitution generally covers four things: the family's stated values, the decisions that require group input, the process for making those decisions, and the circumstances under which the document itself gets revisited.
Because it carries no legal weight, a family constitution does not replace a will, a trust, or an operating agreement. It sits alongside them and answers a different question. Legal documents say who gets what. A constitution says how the family intends to behave about it.
The most common failure is writing one and never opening it again. A constitution that is not revisited on a schedule becomes a historical artifact within a few years, usually just as the next generation reaches the age where it would have mattered.
A sample outline of a family constitution
There is no required format, and families organize these documents in different ways. The outline below is a general illustration of non-legal topics a family may choose to discuss and write down. It is not a template, it is not complete, and it is not a recommendation about what any particular family should include.
Topics a family may choose to cover
- Purpose and values: a short statement, often drawn from the family's mission statement, of what the family hopes its shared wealth may support.
- Participation: which family members take part in discussions, whether in-laws and younger adults are included, and at what age.
- Decisions that involve the group: for example, shared property, philanthropy, or a family business, and which of them a family may want to talk through together.
- How decisions are made: who is consulted, how views are heard, and what a family may do when members disagree.
- Communication and meetings: how often the family meets, who prepares the agenda, and how notes are kept and shared.
- Preparing the next generation: how younger members may learn about the family's plan and its reasoning over time.
- Working with professionals: how the family may coordinate with its own independent legal, tax, and other advisors.
- Review and change: how often the document is revisited and how amendments may be proposed and recorded.
Each of these topics is a conversation prompt. How a family answers them depends on its own circumstances, and a written document does not remove disagreement or ensure that family members will see a matter the same way.
How a family constitution differs from trusts, wills, and other legal documents
A family constitution describes how a family intends to talk about and approach decisions. Trusts, wills, operating agreements, and similar instruments are legal documents drafted by attorneys, and they may be enforceable in ways a constitution is not. The two may work alongside each other, but one does not stand in for the other.
| Dimension | Family constitution | Trusts, wills, and other legal documents |
|---|---|---|
| Main purpose | Records how the family intends to discuss and make shared decisions. | Sets out legal instructions, such as who may receive assets and who may serve as a fiduciary. |
| Legal effect | Generally not legally binding. | May be legally enforceable, depending on the document and applicable law. |
| Who prepares it | The family, often with a facilitator. | Attorneys engaged by the family. |
| Tax treatment | Does not address tax treatment. | May carry tax implications that a qualified tax professional can explain. |
A family constitution does not provide legal or tax advice, and it should not be used to interpret or change a legal document. Families should consult their own independent attorneys and tax professionals about wills, trusts, and other legal documents, and may find it helpful to share any governance work with them so the pieces are coordinated.
A checklist for preparing a family discussion
Before a family sits down to talk about a constitution, a few preparation steps may make the first conversation more productive. This checklist is general and educational, and families may adapt or skip any item.
- Decide who may be invited and tell everyone in advance what the conversation is for and what it is not for.
- Ask each person, ideally separately and beforehand, what matters to them about the family's shared wealth.
- Write a short agenda with two or three topics from the outline above rather than trying to cover everything at once.
- Agree on how the conversation will be run, such as who facilitates and how notes are taken.
- Set aside questions about specific legal documents or tax treatment, and flag them for the family's own attorneys and tax professionals.
- Choose a date to revisit the draft, since a first discussion is usually a starting point.
Families who want to see how this fits into a wider process can read the family governance guide, which describes how the narrative, mission statement, constitution, and meetings relate. The firm's Family Governance service page describes how it supports that work, and the Three-Generation Families page describes how the firm approaches households where several generations take part.
Frequently asked questions
Is a family constitution legally binding?
A family constitution is generally not a legally binding document. It records how a family intends to approach shared decisions. Legal documents such as wills and trusts are prepared by attorneys, and families should consult their own independent legal professionals about them.
What does a family constitution usually include?
Families commonly discuss their shared values, who takes part in decisions, how decisions are made, how often they meet, and how the document is reviewed. The content varies by family, and there is no required format.
How is a family constitution different from a will or trust?
A will or trust is a legal document that may direct how assets are handled. A family constitution is a non-legal statement of how a family intends to talk about and decide matters together. It does not replace legal documents or address tax treatment.
This definition is provided for educational purposes. It is general information, not investment, tax, or legal advice, and it does not account for any individual circumstances.