The power of the family bank
By Warner King Babcock
Are you interested in creating a family legacy while encouraging entrepreneurial spirit, accountability, self-sufficiency and good governance, all within the context of your family’s core values?
A family bank—a family-funded entity that offers financing only to family members or family-owned assets—is a mechanism for achieving those goals. It puts family resources to good use for the benefit of all participating family members. Senior family members provide funds to the family bank, which finances next-generation members’ interests, business ventures, education, homes and other assets. Junior family members should also be encouraged to invest, even a small amount.
If it is designed and managed …
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