Last Updated on 16/06/2025 by Carl-Peter Lehmann
Intergenerational wealth planning for South Africans is no longer a niche pursuit reserved for ultra-wealthy families with sprawling estates. In today’s world of global mobility, digital assets, blended families, and ever-evolving tax rules, effective wealth transfer strategies are more relevant than ever. Done well, intergenerational planning isn’t just about minimising estate duties or protecting assets … it’s about preserving purpose, values, and the ability for future generations to thrive. In this updated 2025 guide, we revisit the foundations of wealth planning and explore how new developments in tax, technology, and global finance are reshaping how families should think about legacy.
Why Why Intergenerational Wealth Planning Still Matters
While much has changed, the core reasons to engage in intergenerational planning remain as important as ever:
1. Preserving Wealth Across Generations: A proactive plan reduces estate duty, capital gains tax, and unintended consequences from poor succession planning or outdated wills.
2. Providing Financial Literacy and Stewardship: Empowering the next generation with knowledge ensures they can grow, not just consume, inherited wealth.
3. Embedding Family Values: A family charter or legacy letter can communicate shared beliefs, philanthropic priorities, and long-term aspirations.
4. Adapting to Complexity: Today’s families are global, with assets and heirs spread across continents. Regulation and currency exposure add new dimensions.
Further Reading: Estate Planning 101 and A Complete Guide to Estate Planning for South Africans
Modern Challenges to Legacy Planning
1. Cross-Border and Local Tax Pressure
Changes to UK non-domicile tax status rules for example and with children now living all over the world … stricter global reporting (CRS and FATCA), and renewed SARS scrutiny mean South African families must carefully navigate local and offshore planning.
Tip: Create or review multi-jurisdictional wills, and ensure tax residency and situs risks are well-understood.
2. Digital and Crypto Assets
Digital wallets, crypto tokens, NFTs, and even loyalty rewards now form part of many clients’ estates — yet few executors are prepared to deal with them.
Tip: Maintain an updated digital asset inventory and secure access plan.
3. Family Complexity and Modern Structures
Blended families, late-life marriages, and dependent elderly parents complicate decision-making and asset division.
Tip: Use trusts and inter vivos structures to manage complexity, and update beneficiaries regularly.
4. Liquidity Gaps at Death
Even wealthy estates can struggle with liquidity for taxes or bequests, leading to forced sales.
Tip: Plan for liquidity using offshore cash, life policies, or tailored investments.
5. Purpose-Led Giving and ESG Legacy
Families increasingly want their wealth to reflect their values, be it through ESG-aligned investing, philanthropy, or social entrepreneurship.
Tip: Consider donor-advised funds, PBO giving, or legacy ESG portfolios as tools to cement your values.
Our Framework for Modern Intergenerational wealth Planning
At Henceforward, we use a layered, practical framework to guide legacy planning … and use tools like family charters to aid this process:
1. Clarify Vision and Values
- Create a legacy letter or family mission statement
- Identify causes or principles that matter across generations
2. Governance and Education
- Involve younger generations through guided conversations or family workshops
- Formalise decision-making via family councils or trustee meetings
3. Estate and Trust Structures
- Ensure local and offshore wills are current and consistent
- Review trust deeds regularly to reflect updated objectives
- Consider local and foreign trust structures for global asset protection
4. Digital Asset Protocols
- Maintain a log of all digital assets and access credentials
- Store backup keys securely
- Include digital provisions in your will
5. Investment Strategy with Purpose
- Diversify across geographies, asset classes, and tax wrappers
- Align portions of portfolios to aligned values or impact mandates if desired
- Consider blended portfolios with both growth and income elements
6. Liquidity and Risk Management
- Plan for estate costs using life cover or liquid assets
- Consider offshore liquidity to mitigate currency risks
7. Review and Compliance
- Reassess plans every 2–3 years or after major life changes
- Conduct cross-border tax and compliance audits periodically
Common Mistakes (and How to Avoid Them)
Outdated or Missing Wills: Wills not reflecting current structures, beneficiaries, or digital assets can derail legacy plans.
Neglecting Liquidity: Estates can become illiquid if most value is tied up in properties or unlisted businesses.
Lack of Communication: Family disputes often arise from secrecy or assumptions.
Ignoring Cross-Border Rules: Poor offshore planning can trigger estate tax, legal battles, or double taxation.
Futher Reading: Avoid these pitfalls when making your legacy plans and transferring wealth
Frequently Asked Questions (FAQ)
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1. What is intergenerational wealth planning?
Intergenerational wealth planning involves preparing and structuring your finances to efficiently pass on assets, values, and knowledge to future generations. This includes estate planning, trust structuring, tax efficiency, and family governance.
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2. Why is wealth planning important for South African families?
South Africans often hold both local and offshore assets. Without proper planning, families face potential double taxation, forced sales, and unintended consequences. Planning ensures wealth is transferred efficiently and in line with your wishes.
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3. Can digital assets be inherited?
Yes, but only if documented properly. Digital assets like crypto wallets, social media accounts, or subscription services should be included in your estate plan with clear access instructions for executors.
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4. How often should I update my estate plan?
Review your plan every 2–3 years or after major events such as marriage, divorce, the birth of a child, or changes in legislation.
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5. What tools can improve tax efficiency when transferring wealth?
These include inter vivos trusts, life policies to fund liquidity, offshore investment wrappers, donations to PBOs, and correctly structured wills (for local and foreign assets).
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6. What is a family charter or legacy letter?
This is a non-binding document that captures your family’s values, hopes, and expectations. It helps heirs understand your intentions and carry your legacy forward.
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7. What level of wealth or complexity justifies legacy and intergenerational wealth planning?
While anyone can benefit from basic estate planning, intergenerational wealth strategies are particularly important when your financial situation involves multiple asset classes (like property, shares, offshore investments), complex family structures, or a desire to leave a lasting impact through philanthropy or values-based investing. As a general guide, families with net assets exceeding R20-R30 million and those with cross-border interests and trusts should seriously consider structured planning.
Final Thoughts on intergenerational wealth planning
Intergenerational wealth planning is both an art and a discipline. It requires a thoughtful blend of legal structuring, tax awareness, family engagement, and investment strategy. When done with care, it helps families not only preserve wealth but also pass down wisdom, values, and opportunity. If you haven’t revisited your plan in the last 3 years — or if your family, assets, or residency have changed — now is the time to act.
Further Reading: How to give with intention and make donations while not reducing what is available to heirs
Carl-Peter Lehmann
Carl-Peter is a Director and Partner at Henceforward, with over 20 years of experience in wealth management and financial planning. As a CERTIFIED FINANCIAL PLANNER™ professional, he brings deep expertise in global investment strategy and cross-border financial structuring
