The Role of the Family Council in 21st Century Governance
Inspired by the wisdom of James E. Hughes Jr., Kirby Rosplock, Rich Bello, and leading practitioners in family office design.
What is the story your family will choose to tell?
Governance isn’t just about who makes the big decisions; it’s about how families stay connected, resilient, and purpose-driven across generations. It’s about the invisible architecture that protects not just capital, but cohesion.
It’s about what you want your legacy to mean.
As wealth structures grow more sophisticated and families span continents and cultures, the family council offers something rare: a dedicated space for alignment without control.
It’s not the boardroom. And it’s certainly not the dinner table.
It is the tiller, the quiet, steady hand that keeps the family sail oriented toward shared purpose, even as the winds change.
A tiller is one of the most fundamental means of steering a boat.
It’s a lever—typically made of wood, metal, or composite—attached to the top of the rudder post at the rear of the vessel. A helmsman directly controls the rudder's angle by moving the tiller from side to side, altering the boat's direction.
On small boats, the tiller is often the sole means of steering—and how its steered is of dire importance. A skilled helmsman guides the tiller with gentle and restrained movements to maintain course and avoid turbulence.
If the family council is our means of navigation—toward modern institutions of trust, inclusion, and generational continuity—then the question becomes:
How can we steer with care and vigilance, without capsizing the ship?
In this issue, we explore how family councils can evolve into modern institutions of trust, inclusion, and generational continuity, without losing the “family” part of the Family Office.
Why Family Councils Matter
In the early stages of wealth creation, governance often centers around control, typically in the hands of a founder or a tight circle of decision-makers. But as families grow in size, complexity, and location, control without communication becomes a liability.
What today’s families need is cohesion without coercion.
As Rich Bello notes in The Family Office Principles, families who neglect alignment risk not only internal conflict but reputational and legal exposure. A well-functioning council is one of the most effective mitigants of these soft risks.
Modern family councils offer space for:
Values-based alignment
Transparent communication
Generational onboarding
Constructive disagreement
Shared learning and voice cultivation
Research from Bernstein and PBL Law supports this view, showing that councils correlate with smoother succession planning, reduced conflict, and increased emotional ownership. Particularly in families transitioning to third- and fourth-generation leadership.
The Evolving Function of a Family Council
Once viewed as symbolic, today’s councils are increasingly strategic. As Kirby Rosplock outlines in The Complete Family Office Handbook, councils now serve as the connective tissue between governance and relational capital.
From Symbolic to Strategic
Education on wealth, values, and legacy
Mediation during conflicts or generational transitions
Philanthropic strategy development
Feedback loops into board and trustee decision-making
They’re not simply forums. They are functional structures that carry weight.
Representation ≠ Relationality
A modern council must offer more than token inclusion. It must guarantee meaningful participation, especially from voices traditionally left out of formal structures—women, in-laws, and rising-gen members.
James E. Hughes Jr. argues that voice precedes vote in great governance. Participation in dialogue—not just formal authority—ensures that families don’t just retain wealth, but pass on wisdom. A council is where those voices can be cultivated, heard, and respected.
From Hierarchy to Horizontality
Unlike boards, which operate on legal authority, family councils thrive on relational capital. Their legitimacy isn’t tied to titles—it’s earned through trust, continuity, and care.
As Hughes puts it, councils steward the family’s qualitative capital, the stories, rituals, norms, and emotional ties that hold a family together long after legal structures fade.
Council as Culture-Bearers
Enduring families don’t just pass on assets, they pass on meaning.
Mission in Action
Councils serve as the arena where values are not only declared but negotiated–a space where tradition meets adaptation.
Spiritual and Moral Compass
For families grounded in faith or philosophical traditions, the council becomes the space to ask: Are we living in alignment with our founding principles? Rather than enforcing doctrine, councils support a kind of shared discernment, ensuring that values remain a living dialogue.
Education and Onboarding
Councils are ideal for introducing younger generations to the family enterprise, whether through foundations, investment principles, or historical case studies. According to The Practical Guide for Wealthy Families, councils are especially useful as low-pressure zones for leadership shadowing and value transmission.
Forum for the Unspoken
Whether managing liquidity events, integrating spouses, or confronting succession questions, councils provide the container for early, honest conversations before tensions reach the boardroom.
Operational vs. Relational Governance
Board vs. Family Council
Decision-making vs. Dialogue-building
Legal authority vs. Emotional authority
Strategic planning vs. Cultural continuity
Managing assets vs. Stewarding relationships
Both are essential. But only one focuses on who we are becoming as a family.
Building a Council That Works
A well-functioning council isn’t accidental; it’s designed with care, structure, and foresight. Drawing on frameworks from Rosplock, Hughes, Bello, and The Practical Guide, successful councils exhibit:
A clear charter that outlines purpose, scope, authority, and role within the broader family governance structure
Defined membership protocols, including transparent rotations, eligibility criteria, and term limits
Consistent communication rhythms—quarterly meetings, annual retreats, or monthly touchpoints
Integrated feedback loops with the family office and trustees
Use of council KPIs (participation, satisfaction, inclusion, generational engagement) to ensure it is performing, not just existing
Dedicated mentoring and onboarding to grow future council leaders from within the family
Rich Bello emphasizes treating the council as an “internal client” of the family office. When operational teams listen to the voices curated and elevated by the council, the system becomes adaptive, not reactive.
Governance Is Not Just a Structure. It’s a Story.
At its core, governance is narrative. It answers the question: Who gets to shape the story? What values endure? Who is heard?
When built well, councils shift legacy from control to connection–from forcing to guiding, from directing to navigating–ensuring the family's capital serves a shared identity and future.
As Hughes writes, the purpose of governance is not the preservation of wealth, but the flourishing of the family.
Legacy Is Lived in Dialogue
Good governance is not merely legal; it is relational, lived, and evolving.
The family council is where that happens. A tiller that navigates the complexity, nurtures voice, and aligns vision—not just for today, but for generations to come.
Coming Up Next:
In our next issue, we’ll explore how councils can help families navigate modern complexity from AI-driven investing to cross-cultural decision-making, education models, and impact governance.