Family Constitution Guide (US)
A practical guide to writing the rules that keep family wealth aligned.
Updated: 2026-01-21
Answer (2026): A family constitution is a governance agreement that defines purpose, decision rights, and conflict rules so wealth decisions stay aligned across generations. It is not a legal document, but it makes estate and trust documents usable because everyone follows the same playbook.
Context: Best for families with shared assets, a private business, or a liquidity event on the horizon.
Action: Start the Family Constitution Starter, then align it with the Family Office Blueprint.
Last reviewed: January 21, 2026.
Key takeaways
- A constitution sets decision rules, not legal terms.
- Governance beats good intentions when conflict shows up.
- It protects relationships by making expectations explicit.
If meetings repeat the same debate, the constitution is missing or stale.
What a family constitution actually is
A written agreement about how your family makes decisions, handles conflict, and defines purpose. It sits above the legal estate plan and makes it usable.
What it is not
- A trust document
- A will or power of attorney
- A substitute for legal counsel
Why families with complexity need it
When wealth grows faster than governance, decision rights become ambiguous. That is when meetings become tense and capital starts to fragment. A constitution turns values into rules so the next big decision does not turn into a fight.
The five-part framework
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Purpose and values. What the money is for, what it is not for.
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Decision rights. Who votes on major choices and what qualifies as major.
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Governance rhythm. How often you meet, who sets the agenda, how updates are shared.
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Conflict rules. The process for resolving disagreements before they become legal conflicts.
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Next-generation pathway. Education, responsibility, and the path into stewardship.
Signals you need a constitution now
- A liquidity event is coming and ownership will change.
- The family is growing and roles are unclear.
- Meetings happen, but decisions do not stick.
- A single person holds all the context.
- Conflict is avoided instead of resolved.
Decision checklist
- Can every family member explain the purpose in one sentence?
- Are decision rights explicit or implied?
- Is there a meeting cadence that would survive a busy year?
- Do you have a conflict rule beyond “we will talk”?
- Is the next generation clear on expectations and timing?
Example scenario
A second-generation founder is preparing to sell a minority stake in a family business. One sibling wants liquidity for a new venture, another wants to keep shares in the company. A constitution resolves this by defining distribution rules, voting thresholds, and a conflict process before the deal closes.
Questions to ask your advisor
- What governance gaps tend to create friction in families like ours?
- How should we sequence this with estate plan updates?
- Which sections should be reviewed annually vs. every few years?
Related tools
Related resources
Next step
Start the Family Constitution Starter for a 10-minute governance brief, then align it with the Family Office Blueprint to expand it into a full planning system.
Compliance note
This guide is for planning and coordination only. It does not provide legal or investment advice. Confirm legal document updates with a qualified attorney.
Sources
Next steps
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