Wealth & reporting
The family balance sheet
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Deutsche Fassung
Short answer
The family balance sheet shows all assets and liabilities of a family at current values on a reporting date – across private wealth, companies, foundations and trusts. It becomes meaningful when it also shows open fund commitments, guarantees and deferred taxes, names its valuation sources and can be broken down by person or family branch. It is the basis for liquidity, succession and investment decisions.
More than a wealth overview
A simple overview adds up custody accounts and properties. A balance sheet sets liabilities against assets and shows net worth. Only then does it become visible how much is actually freely available, how high leverage is and which obligations the family faces.
Structure
| Area | Content | Valuation |
|---|---|---|
| Cash | Accounts, money market, fixed deposits | Balance on the reporting date |
| Securities | Equities, bonds, funds | Market value on the reporting date |
| Private markets | Private equity, private debt, infrastructure | Latest NAV, state the date |
| Direct holdings | Family business, co-investments | Valuation with method and date |
| Real estate | Own use, let, under construction | Appraisal with date |
| Tangible assets | Art, precious metals, vehicles, yacht | Appraisal or insured value |
| Liabilities | Mortgages, Lombard loans, loans | Nominal value |
| Off balance sheet | Open commitments, guarantees | Amount with due date |
What is often missing
- Open capital commitments to funds that will tie up liquidity in future.
- Guarantees for family members or companies.
- Deferred taxes on unrealised gains that would arise on a sale.
- Loans between family members and companies.
- The age of each valuation.
Breakdowns for different questions
The same data answers different questions depending on the view: by asset class for investment strategy, by person or branch for succession planning, by structure for governance and tax, by currency for currency risk, by liquidity for liquidity planning. A good family balance sheet can be analysed in each of these views without new data entry.
Reporting date and rhythm
For decisions a quarterly or monthly reporting date is usually sufficient. Consistency matters: all values should refer to the same date or show a different date openly. A comparison with the previous year shows whether changes come from markets, inflows and outflows or revaluations.
In FLIORE
FLIORE keeps assets, liabilities and accounts of all structures in several currencies and consolidates them pro rata into net worth. The monthly report shows net worth with the change from the previous month, allocation and trend; valuation dates stay visible and outdated valuations are flagged by the data-quality check.
At a glance
| Core | Assets minus liabilities = net worth |
|---|---|
| Often forgotten | Open commitments, guarantees, deferred taxes |
| Views | Asset class, person, structure, currency, liquidity |
Frequently asked questions
How is the family business valued?
With a recognised method such as capitalised earnings, discounted cash flow or multiples, with date and source. Consistency over the years matters so that changes do not stem only from changes of method.
Does the family home belong on the balance sheet?
Yes, as part of total wealth, often shown separately because it is not an investment. It is frequently left out for liquidity and allocation questions.
How often should the balance sheet be prepared?
Monthly or quarterly for ongoing management, at least annually with updated estimates of illiquid assets for succession and strategy questions.
Should deferred taxes be deducted?
For a realistic view, yes, at least as a separate line. They show what part of the wealth would remain after a sale.
Sources
- Global Investment Performance Standards (GIPS) – CFA Institute
- RICS – Valuation standards (Red Book)
- International Private Equity and Venture Capital Valuation Guidelines (IPEV)
This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.
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