Approving personal use of assets owned by a billionaire family enterprise

Built on Chapter 6 of How to Start a Family Office by Richard C. Wilson.

Personal use of an enterprise-owned asset should have an approved route before a relative makes the reservation. A billionaire family can own a property through a company while family members think of it as simply belonging to the family. Staff need instructions that respect the actual ownership and obligations.

The book includes personal use of family business assets within the ethics policy. I would apply that principle to the request and approval process. Qualified advisors should assess the legal and tax treatment; office staff should coordinate the approved arrangement.

Identify what is being requested

Ask which asset the family member wants to use and for what period. Determine whether the request concerns an asset administered by the office or by an operating company. Route it to the responsible contact.

Keep the request separate from approval. An employee checking availability should make clear whether the reservation remains subject to authorization. The family member should not reasonably assume that a tentative calendar entry establishes permission.

Collect the facts required for the decision without gathering unrelated details. The asset manager needs enough information to assess availability and operating requirements.

Confirm who can authorize the use

Use the governing arrangements and approved policy to identify the decision maker. Family membership alone does not establish authority to instruct the entity that owns the asset.

Have counsel address uncertain authority or conflicting obligations. The office should not settle that question by choosing the most senior relative available to answer a phone call.

If an employee has received inconsistent instructions, pause the affected arrangement and escalate the conflict. Continuing to book suppliers can create commitments while the underlying permission remains unresolved.

Establish conditions before the use begins

Explain any applicable conditions and obtain the required acknowledgment. Those conditions may concern scheduling or the use of outside providers. Have the relevant professionals establish what is appropriate for the asset.

Confirm how expenses and records will be handled. The office should follow advice from the accountants and counsel on any payment or reporting treatment. Employees should not describe a use as free merely because no invoice has yet been issued.

Coordinate with the asset's operating team. An approved request may still require practical preparation and confirmation that the asset is available for the intended use.

Keep the accepted reservation in the authorized scheduling process. If different employees maintain separate calendars, the office can promise the same period to different people.

Define who may change an approved booking and how affected users are informed. A verbal request from a relative should not quietly override an existing arrangement without the appropriate decision.

When a conflict requires a family policy decision, bring the facts to the authorized person. The employee should explain the competing requests without being asked to decide which relative deserves preference.

Keep an appropriate use record

Retain the information required by the approved arrangement. The record should support asset management and any necessary professional work. It should show the actual use and material changes from the approved request.

Share that record only with the people who need it. The office can maintain accountability without circulating details of a household's activities to every family member.

If the arrangement was exceeded or an unapproved cost arose, report it through the established process. Avoid quietly absorbing the issue into general office expenses.

Address recurring exceptions through policy

An occasional exception may be authorized under the actual arrangement. Repeated exceptions suggest that the policy no longer describes how the asset is being used. Bring that pattern to the responsible decision makers.

Ask the relevant advisors to assess any proposed policy change before staff implement it. A scheduling convenience can have consequences beyond the calendar.

Communicate the operative instructions to the family and the people administering the asset. A usable policy should let an employee process an ordinary request without relying on a private understanding with the founder.

Questions and answers

Does owning the company give every relative permission to use its assets? Use the actual governing arrangements and approved policy. Have counsel resolve uncertain authority.

Should staff decide the tax treatment of personal use? No. Qualified advisors should determine the treatment, and staff should retain the records needed to implement it.

This page is general information, not legal advice. Family governance documents and dispute processes should be reviewed by a qualified attorney.