Skip to content
Get in touch

Glossary

Family Charter

A Family Charter is a written foundational document of an entrepreneurial family that sets out values, decision-making rules, governance structures, distribution guidelines, and succession principles in a binding manner within the family. It is not a publicly enforceable legal instrument, and it does not create direct obligations towards third parties; however, it provides the governance framework that prevents conflicts from arising in the first place. Legal structures such as family foundations or inheritance agreements can complement the Family Charter but do not replace it.

At a glance

01

The Family Charter is an internal family document and not a legal instrument enforceable against third parties under the Swiss Civil Code.

02

It typically governs governance bodies (family council, investment committee), decision-making competencies, distribution rules, and succession principles.

03

From a liquid family wealth of approximately CHF 20 million, practitioners generally recommend external professional support in drafting it.

04

Legal supplements such as family foundations or inheritance agreements can provide legal backing for specific provisions of the Family Charter.

Frequently asked questions

A Family Charter is not a public legal document and does not create direct enforceable obligations towards third parties. Within the family, however, it establishes a strong moral and factual commitment. Specific provisions can be backed by legal instruments such as inheritance agreements, shareholder agreements, or family foundation statutes.
Ideally while the family still acts as a unit and the transfer of wealth to the next generation has not yet taken place. The earlier the rules are established, the lower the potential for conflict. Practitioners advise against delaying the process until a conflict arises, as reaching compromises becomes significantly more difficult at that stage.