Replace Ad-Hoc Gifting with a Family Bank
When every request for money goes to a parent or a patriarch, relationships carry the weight. A family capital framework moves those decisions into a fair, documented process, so the answer depends on the plan, not on who asked.
Why It Exists
- Reduce conflict between generations
- Preserve dignity and accountability
- Encourage productive use of capital
- Take the personal element out of financial decisions
What It Is
A family-specific process for requesting, evaluating, approving, and monitoring the use of family capital, organized into three tiers with their own terms.
What It Is Not
Not a pooled vehicle. Each family keeps its own balance sheet, rules, and authority. 2SIX Partners is steward of the process, not arbiter of merit.
Different Needs, Different Terms
| Tier | Typical uses | Terms | Approval |
|---|---|---|---|
| Foundational Capital | Education, health, primary residence support | Concessionary | Simplified |
| Development Capital | Business ventures, real estate, professional growth | Market or near-market | Formal underwriting and milestones |
| Opportunity Capital | Higher-risk or entrepreneurial initiatives | True risk capital | Rigorous underwriting and reporting |
Illustrative. Each family sets its own eligibility, documentation, pricing, and approval thresholds for every tier.
How a Request Moves
Application
A family member submits a standard request: what the capital is for, how much, and on what timeline.
Analysis
2SIX partners review the request against the tier's criteria and prepare a written recommendation.
Decision
The decision is made under the family's own framework, with as much or as little family participation as the family has chosen.
Feedback and follow-through
Every applicant gets feedback, approved or not. Approved capital is monitored against its terms and milestones.
Coordinated with your attorney and CPA. Intra-family loans, gifts, and investments carry tax and legal consequences. The family's own advisors design those structures; 2SIX Partners administers the process around them.
Frequently Asked Questions
What is a family bank?
A family bank is a structured way for a family to fund members' needs and ventures from family capital, using written rules, applications, and approval thresholds instead of informal gifts and loans. It can include grants, loans, and investments, each with its own terms.
Is the Family Capital Framework a pooled investment fund?
No. Each family maintains its own balance sheet, rules, and authority. Nothing is pooled across families. 2SIX Partners administers the process; the family's own framework decides.
Who makes the final decision on a capital request?
The family does, according to the framework it adopts. 2SIX Partners prepares the analysis, makes a recommendation, and enforces the agreed process, but final authority sits with the family as defined in its own rules.
Does a family bank have tax or legal consequences?
It can. Loans, gifts, and investments among family members and entities raise gift, income, and estate tax questions and must be documented properly. Each family's attorney and CPA should design the legal and tax structure; 2SIX Partners does not provide legal or tax advice.