Video: Family Offices - Succession, Rising Gen, Education and Governance (Vocabulary Flashcards)

A set of vocabulary-style flashcards covering key concepts from the lecture notes on succession planning, rising generation engagement, and governance in family offices.

Succession planning

A deliberate, planned process to transfer leadership and responsibilities to the next generation, including governance, education, and a written plan.

Rising Gen / Next Gen

Young family members (roughly 25–40) who participate in the family enterprise through training, governance roles, philanthropy, and decision-making.

Written succession plan

A formal document detailing the transition plan, roles, responsibilities, and governance for future leadership.

G1, G2, G3, G4

Generational labels in a family office: G1 founder, G2 children, G3 grandchildren, G4 great-grandchildren; tracks leadership succession.

Board governance

Structured oversight for the family office, where board members, executives, and advisers set policy and supervise operations.

Death audit

A hypothetical exercise to model reactions to a patriarch/matriarch’s death and test the effectiveness of plans and governance.

Philanthropy as engagement

Using family philanthropy and foundations to teach values, governance, and financial literacy to rising gen.

Education vs training

Education provides knowledge; training provides practical skills (e.g., board leadership, reading a K-1) for rising gen.

Lead time

Starting succession planning well before leadership changes to minimize disruption and ensure a smooth transition.

Emotional considerations

The emotional aspects of succession (grief, fear, pride) that can hinder planning; emphasizes psychological safety.

Transparency in succession

Rising gen desire for openness about goals and plans, balanced with appropriate privacy of sensitive information.

Rising Gen engagement methods

Ways young family members get involved: attending family meetings, serving on boards, philanthropy, internships, governance learning.

Trustee/Beneficiary training

Education for those serving as trustees or beneficiaries to understand duties, responsibilities, and governance.

Cash flow literacy

Understanding how family wealth moves: distributions, taxes, liquidity, and how money is allocated and used.

Cybersecurity and etiquette

Starting topics for new learners focusing on cybersecurity and social media etiquette to build safe, responsible practices.

Single vs Multi-family office

A family office can serve one family or multiple families; governance and complexity differ accordingly.