India

AI-generated image Mumbai: A growing number of wealthy Indian families, often nudged by younger members, are adopting a “family constitution”, a document that lays out the principles governing wealth creation, philanthropy, succession planning, and the family’s larger sense of purpose. Part legal blueprint, part moral compass, these charters attempt to codify not just money matters, but also the family’s value system. Reflecting a changing social landscape, many charters now grapple with questions older business dynasties would once have avoided: What happens if a gay family member marries abroad? Should a daughter who chooses ceramics or music over the family enterprise lose financial rights? How does one accommodate family members who reject traditional expectations? Youngsters driving charter adoption “A family constitution is a guiding charter that seeks to establish a framework for the family, rooted in its ethos and values, rather than functioning as a conventional legal binding document,” says Jahnavi Kohli, partner at ANB Legal, heading the private client practice, who has recently observed an enormous rise in families approaching her to draft such documents. “What is most evident today is that everyone wants an equal seat at the table,” she notes. The real significance of these charters lies in how they signal a move away from the era of the powerful patriarch, whose toxic grip over family wealth often bred resentment and eventual fracture. Lack of clarity combined with simmering egos have sparked countless Mahabharatas within Indian business families. Yet, there could be covert forms of control. For instance, many constitutions, especially among ultra-wealthy multi-generational families, call for an annual ‘retreat’ at which all family members must be present – much like the ones that unfold in the twisted comedy shows like ‘Succession’ or ‘The Perfect Couple’. Defined as a ‘family retreat’, that Maldives vacation with Dadaji and Dadiji then gets written off as a business expense. Each branch of the family can also go on separate holidays, but the constitution allocates the maximum amount that can be spent by each person, or requires fuel reimbursement if the helicopter or jet has been used beyond a defined number of trips. “Philanthropy forms a very important part of this charter,” says Nitaa Shivdasani, managing director and head of HERitage Waterfield Advisors. “One client said he wanted to work on protecting marine life, so our philanthropy team strategically found projects which work in that area. Many families want to contribute to medical research, especially towards cancer,” she adds. Clauses in different documents lay out the minutiae of what can or cannot be done. For example, one says: Charity shall not be done for publicity. Or, there might be specifics about what kinds of charities are permissible. Another charter warns against mixing business with friendship, stating: The family recognizes that entering into business dealings with friends and relatives can cause strain on relationships and will refrain from such transactions, or do so only with the prior approval of the Family Business Board. “Today, people are OK with openly talking about money and how to navigate distribution within one’s lifetime rather than waiting for the elders to pass on,” says Zeherra Mecklai, a wealth managerin this area. “The ideas are coming from the bottom up, not top down. Youth want to take charge. We have US-return youngsters coming to us saying, please help us set up a family charter for our family office.” The fast-growing family office is essentially an entity that manages wealth of affluent families – looking at investments and intergenerational transfer and distribution within the lifetime, including ring-fencing assets within private trusts, a common practice to protect assets in the event of, say, a divorce. Family offices in India have grown significantly in 5-6 years, reflecting both new wealth creation and the aspiration for family branding. Covid forced many to confront mortality and plan succession. The family office, an old practice among old-wealth in Europe and US, has since become a status symbol. “When someone says, ‘I manage our family office’ it is a euphemism for ‘I have serious money’,” says a wealth manager. The family office often comes into effect when there has been a “liquidity event”, the term used to describe the sale of a business or property that generates a lot of cash. Investment experts suggest a minimum combined asset base of Rs 100 crore makes it worthwhile to create a family office. And with the family office comes the constitution. “I actually find addressing the non-financial aspects more difficult,” says Delhi businessman Sanjay Goyal, who is in the process of working on his family charter.End of ArticleFollow Us On Social MediaVideos“Fix Delhi And Pahalgam First” West Bengal CM Mamata Banerjee Launches Fierce Attack On BJP“TMC’s Time Is Over” Amit Shah Tears Into TMC Over Infiltrators During Bengal RallyPassport Row Escalates: Pawan Khera Approaches Supreme Court After Gauhati HC Rejects Bail PleaBJP MP Sudhanshu Trivedi Attacks TMC, Raises RG Kar Case And Law And Order ConcernsPM Narendra Modi To Inaugurate 594 Km Ganga Expressway In Uttar Pradesh On April 29“India Expands Global Trade Reach” Union Minister Piyush Goyal On NZ FTAMarathi Mandatory In Maharashtra From May 1 |CM Fadnavis Pushes Language Rule For Auto, Taxi Drivers“TMC Is Protecting Goons In Sandeshkhali” PM Modi’s Big Charge At RallyBJP Destroyed All Good Work” Kejriwal Says Schemes Will Be Scrapped In West BengalAAP Seeks Disqualification Of 7 Rajya Sabha MPs Who Joined BJP, Legal Battle On Anti-Defection Law123Photostories7 radiant baby girl names that symbolise sunshineFrom facing trolls over husband Shardul Bayas’ past divorces to choosing not to have kids, Nehha Pendse opens up about her career, marriage, and lifeRhea Chakraborty gets relief in Sushant Singh Rajput case: What court said on unfreezing bank accounts and what it meansEat smart for every organ: Foods that support your lungs, liver, gut, and eyes6 foods that spoil faster than most people realise in summerCan a low birth weight increase stroke risk even in healthy adults?Growing persimmon at home? These 5 tips make it surprisingly easy9 foods you should avoid grinding in a mixer grinder’Greenland 2: Migration’ OTT release: Gerard Butler to Morena Baccarin, know all about the cast and charactersUTI symptoms you shouldn’t ignore: How a simple infection can lead to kidney damage123Hot PicksTamil Nadu ElectionWest Bengal voter turnoutAssembly Election 2026Mamata BanerjeeTamil Nadu voter turnoutAmit ShahPM ModiTop TrendingRaghav Chadha Joins BJPTamil Nadu electionAP SSC Class 10 resultsRRB opens qualificationAIIMS B.Sc. coursesJac Class 12 ResultPatrick MahomesBengal PollsNirmala SitharamanIPL Orange Cap

Vamsikrishna1 hour ago04 mins mins

$AI-generated image Mumbai: A growing number of wealthy Indian families, often nudged by younger members, are adopting a “family constitution”, a document that lays out the principles governing wealth creation, philanthropy, succession planning, and the family’s larger sense of purpose. Part legal blueprint, part moral compass, these charters attempt to codify not just money matters, but also the family’s value system. Reflecting a changing social landscape, many charters now grapple with questions older business dynasties would once have avoided: What happens if a gay family member marries abroad? Should a daughter who chooses ceramics or music over the family enterprise lose financial rights? How does one accommodate family members who reject traditional expectations? Youngsters driving charter adoption “A family constitution is a guiding charter that seeks to establish a framework for the family, rooted in its ethos and values, rather than functioning as a conventional legal binding document,” says Jahnavi Kohli, partner at ANB Legal, heading the private client practice, who has recently observed an enormous rise in families approaching her to draft such documents. “What is most evident today is that everyone wants an equal seat at the table,” she notes. The real significance of these charters lies in how they signal a move away from the era of the powerful patriarch, whose toxic grip over family wealth often bred resentment and eventual fracture. Lack of clarity combined with simmering egos have sparked countless Mahabharatas within Indian business families. Yet, there could be covert forms of control. For instance, many constitutions, especially among ultra-wealthy multi-generational families, call for an annual ‘retreat’ at which all family members must be present – much like the ones that unfold in the twisted comedy shows like ‘Succession’ or ‘The Perfect Couple’. Defined as a ‘family retreat’, that Maldives vacation with Dadaji and Dadiji then gets written off as a business expense. Each branch of the family can also go on separate holidays, but the constitution allocates the maximum amount that can be spent by each person, or requires fuel reimbursement if the helicopter or jet has been used beyond a defined number of trips. “Philanthropy forms a very important part of this charter,” says Nitaa Shivdasani, managing director and head of HERitage Waterfield Advisors. “One client said he wanted to work on protecting marine life, so our philanthropy team strategically found projects which work in that area. Many families want to contribute to medical research, especially towards cancer,” she adds. Clauses in different documents lay out the minutiae of what can or cannot be done. For example, one says: Charity shall not be done for publicity. Or, there might be specifics about what kinds of charities are permissible. Another charter warns against mixing business with friendship, stating: The family recognizes that entering into business dealings with friends and relatives can cause strain on relationships and will refrain from such transactions, or do so only with the prior approval of the Family Business Board. “Today, people are OK with openly talking about money and how to navigate distribution within one’s lifetime rather than waiting for the elders to pass on,” says Zeherra Mecklai, a wealth managerin this area. “The ideas are coming from the bottom up, not top down. Youth want to take charge. We have US-return youngsters coming to us saying, please help us set up a family charter for our family office.” The fast-growing family office is essentially an entity that manages wealth of affluent families – looking at investments and intergenerational transfer and distribution within the lifetime, including ring-fencing assets within private trusts, a common practice to protect assets in the event of, say, a divorce. Family offices in India have grown significantly in 5-6 years, reflecting both new wealth creation and the aspiration for family branding. Covid forced many to confront mortality and plan succession. The family office, an old practice among old-wealth in Europe and US, has since become a status symbol. “When someone says, ‘I manage our family office’ it is a euphemism for ‘I have serious money’,” says a wealth manager. The family office often comes into effect when there has been a “liquidity event”, the term used to describe the sale of a business or property that generates a lot of cash. Investment experts suggest a minimum combined asset base of Rs 100 crore makes it worthwhile to create a family office. And with the family office comes the constitution. “I actually find addressing the non-financial aspects more difficult,” says Delhi businessman Sanjay Goyal, who is in the process of working on his family charter.End of ArticleFollow Us On Social MediaVideos“Fix Delhi And Pahalgam First” West Bengal CM Mamata Banerjee Launches Fierce Attack On BJP“TMC’s Time Is Over” Amit Shah Tears Into TMC Over Infiltrators During Bengal RallyPassport Row Escalates: Pawan Khera Approaches Supreme Court After Gauhati HC Rejects Bail PleaBJP MP Sudhanshu Trivedi Attacks TMC, Raises RG Kar Case And Law And Order ConcernsPM Narendra Modi To Inaugurate 594 Km Ganga Expressway In Uttar Pradesh On April 29“India Expands Global Trade Reach” Union Minister Piyush Goyal On NZ FTAMarathi Mandatory In Maharashtra From May 1 |CM Fadnavis Pushes Language Rule For Auto, Taxi Drivers“TMC Is Protecting Goons In Sandeshkhali” PM Modi’s Big Charge At RallyBJP Destroyed All Good Work” Kejriwal Says Schemes Will Be Scrapped In West BengalAAP Seeks Disqualification Of 7 Rajya Sabha MPs Who Joined BJP, Legal Battle On Anti-Defection Law123Photostories7 radiant baby girl names that symbolise sunshineFrom facing trolls over husband Shardul Bayas’ past divorces to choosing not to have kids, Nehha Pendse opens up about her career, marriage, and lifeRhea Chakraborty gets relief in Sushant Singh Rajput case: What court said on unfreezing bank accounts and what it meansEat smart for every organ: Foods that support your lungs, liver, gut, and eyes6 foods that spoil faster than most people realise in summerCan a low birth weight increase stroke risk even in healthy adults?Growing persimmon at home? These 5 tips make it surprisingly easy9 foods you should avoid grinding in a mixer grinder’Greenland 2: Migration’ OTT release: Gerard Butler to Morena Baccarin, know all about the cast and charactersUTI symptoms you shouldn’t ignore: How a simple infection can lead to kidney damage123Hot PicksTamil Nadu ElectionWest Bengal voter turnoutAssembly Election 2026Mamata BanerjeeTamil Nadu voter turnoutAmit ShahPM ModiTop TrendingRaghav Chadha Joins BJPTamil Nadu electionAP SSC Class 10 resultsRRB opens qualificationAIIMS B.Sc. coursesJac Class 12 ResultPatrick MahomesBengal PollsNirmala SitharamanIPL Orange Cap$

Wealthy clans now swear by 'family constitution' codifying not just money matters, but value system

Mumbai: A growing number of wealthy Indian families, often nudged by younger members, are adopting a “family constitution”, a document that lays out the principles governing wealth creation, philanthropy, succession planning, and the family’s larger sense of purpose. Part legal blueprint, part moral compass, these charters attempt to codify not just money matters, but also the family’s value system. Reflecting a changing social landscape, many charters now grapple with questions older business dynasties would once have avoided: What happens if a gay family member marries abroad? Should a daughter who chooses ceramics or music over the family enterprise lose financial rights? How does one accommodate family members who reject traditional expectations?

Youngsters driving charter adoption

“A family constitution is a guiding charter that seeks to establish a framework for the family, rooted in its ethos and values, rather than functioning as a conventional legal binding document,” says Jahnavi Kohli, partner at ANB Legal, heading the private client practice, who has recently observed an enormous rise in families approaching her to draft such documents. “What is most evident today is that everyone wants an equal seat at the table,” she notes. The real significance of these charters lies in how they signal a move away from the era of the powerful patriarch, whose toxic grip over family wealth often bred resentment and eventual fracture. Lack of clarity combined with simmering egos have sparked countless Mahabharatas within Indian business families. Yet, there could be covert forms of control. For instance, many constitutions, especially among ultra-wealthy multi-generational families, call for an annual ‘retreat’ at which all family members must be present – much like the ones that unfold in the twisted comedy shows like ‘Succession’ or ‘The Perfect Couple’. Defined as a ‘family retreat’, that Maldives vacation with Dadaji and Dadiji then gets written off as a business expense. Each branch of the family can also go on separate holidays, but the constitution allocates the maximum amount that can be spent by each person, or requires fuel reimbursement if the helicopter or jet has been used beyond a defined number of trips. “Philanthropy forms a very important part of this charter,” says Nitaa Shivdasani, managing director and head of HERitage Waterfield Advisors. “One client said he wanted to work on protecting marine life, so our philanthropy team strategically found projects which work in that area. Many families want to contribute to medical research, especially towards cancer,” she adds. Clauses in different documents lay out the minutiae of what can or cannot be done. For example, one says: Charity shall not be done for publicity. Or, there might be specifics about what kinds of charities are permissible. Another charter warns against mixing business with friendship, stating: The family recognizes that entering into business dealings with friends and relatives can cause strain on relationships and will refrain from such transactions, or do so only with the prior approval of the Family Business Board. “Today, people are OK with openly talking about money and how to navigate distribution within one’s lifetime rather than waiting for the elders to pass on,” says Zeherra Mecklai, a wealth managerin this area. “The ideas are coming from the bottom up, not top down. Youth want to take charge. We have US-return youngsters coming to us saying, please help us set up a family charter for our family office.” The fast-growing family office is essentially an entity that manages wealth of affluent families – looking at investments and intergenerational transfer and distribution within the lifetime, including ring-fencing assets within private trusts, a common practice to protect assets in the event of, say, a divorce. Family offices in India have grown significantly in 5-6 years, reflecting both new wealth creation and the aspiration for family branding. Covid forced many to confront mortality and plan succession. The family office, an old practice among old-wealth in Europe and US, has since become a status symbol. “When someone says, ‘I manage our family office’ it is a euphemism for ‘I have serious money’,” says a wealth manager. The family office often comes into effect when there has been a “liquidity event”, the term used to describe the sale of a business or property that generates a lot of cash. Investment experts suggest a minimum combined asset base of Rs 100 crore makes it worthwhile to create a family office. And with the family office comes the constitution. “I actually find addressing the non-financial aspects more difficult,” says Delhi businessman Sanjay Goyal, who is in the process of working on his family charter.