Problem
Wealthy families often own shared properties in the form of a family compound, intended to be a platform for family gatherings and cohesion. One client family found that, over time, expectations for how such a compound would be used and managed began to change. Significant dissension developed over how to allocate access between family members, manage repairs and upkeep, and, eventually, allow family members to remove themselves entirely.
Solution
Ballentine Partners helped family members clarify their interests and evaluate alternatives, developing a solution that:
- Maintained ownership in a family trust to support long-term ownership & governance
- Separated the trust, allocating more-liquid assets to those opting out
- Developed budgets and ensured sufficient resources for property upkeep
- Defined clear responsibilities for property maintenance and oversight
- Provided for regular monitoring of the approach and changes as needed
Result
The solution dramatically reduced family tensions through a better allocation of family resources and a clarified operating approach. Now, the properties can be a source of joy for those who have chosen to participate without creating a headache for those who have not.
Disclosure Information:
This story was written by Ballentine Partners. It is not a testimonial or endorsement. While this story is based on a real client situation, we have altered some of the details to protect confidential information. No portion of this story should be construed as a guarantee that any other person will experience a certain level of results or satisfaction if Ballentine Partners is engaged, or continues to be engaged, to provide services.
