The Value of Full, Open, Willing Disclosure

Full disclosure is a critical element in many of the attributes that affect family businesses. Sharing sensitive, personal information with one another can help build trust. Providing facts that affect one another's personal and business planning affirms responsible ownership and mutual respect. Different families are comfortable with different levels of disclosure, particularly in relation to several key issues like: 1. compensation and perks of family members, 2. wills and estate plans, 3. family support and gifting, 4. shareholder liquidity, and 5. choices of trustees and business successors. Most business families find relief when the perceptions of secrecy and distrust are lifted away. If disclosures have not been the family norm, the sharing of information should unwind gradually.