Building generational wealth starts with a plan — and a conversation. Here’s how to pass down money and knowledge with intention.
Around the globe, conversations about wealth are constantly shifting. Wealth is no longer only about being able to live a lavish lifestyle; there is an increased emphasis on building and maintaining generational wealth. This is arguably even more important in the South African context.
According to a Moneyweb article, we’re on the brink of the largest inter-generational wealth transfer in history. And with that comes both opportunity and risk.
“The majority of wealth is now in the hands of individuals over 65 years old. In the next decade or two, we’re going to see a major shift,” says Michael Rossouw, senior investment consultant at 10X Investments.
This highlights that wealth is no longer just about how much money you leave behind. It’s also about how you pass it on. Beyond the assets and investments, wealth transfer needs to be intentional: empowering the next generation with the knowledge, skills and values to sustain and grow that legacy.
According to the 2025 Sanlam Legacy Wills survey, 66% of South Africans don’t have a will, meaning that much of their hard-earned wealth risks being mismanaged or caught in legal limbo. At the same time, the wealthiest 10% of households control over 75% of household wealth, highlighting how critical strategic and informed planning has become.
“Successful wealth transfer isn’t only about handing over assets. It’s about leaving behind the lessons, principles and legacy that shaped that wealth in the first place,” according to an article in GQ South Africa.
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Why intention matters
When it comes to wealth, having a plan isn’t just smart — it’s essential. For older generations, formalising estate plans through wills, trusts and powers of attorney ensures that wishes are honoured and potential disputes avoided. Starting early also allows flexibility to adapt as family dynamics or financial goals evolve.
Yet many families still shy away from money talk, and this silence can be costly. “The best thing you can do for your family is to be transparent. Share expectations openly. It builds trust and avoids misunderstandings,” says Michael.
Intentional wealth transfer is about preventing entitlement and promoting purpose. It’s about showing heirs not just what they’re inheriting, but why — and preparing them to steward that wealth responsibly.
Smart structuring, smarter legacy
Different investment vehicles each offer unique advantages, but you should be aware of what happens to these investments when they are part of a will.
Discretionary investments like unit trusts and shares are often taxed within the estate. Endowments, on the other hand, allow beneficiaries to access funds more smoothly and avoid executor’s fees, “making them a strategic estate tool”, adds Michael.
Retirement products also play a role. Knowing how annuities, pensions and preservation funds transfer — and their tax implications — can make a significant difference.
All in all, passing down wealth with intention means building something greater than individual success. It’s about nurturing a family culture of learning, purpose and shared vision. The strongest legacies are not built in one lifetime. They are built across generations with shared purpose and vision.
Knowledge is the real inheritance
While legal paperwork protects assets, it’s knowledge that truly protects legacies. Teaching the next generation how wealth was earned, what sacrifices it took and the principles behind it equips them to sustain it.
“It’s not just about the money — it’s passing on knowledge, networks and wisdom,” says investment expert Michael Rossouw.
It is also important to note that money doesn’t operate in isolation. Economic trends, inflation, interest rates and political shifts all influence how wealth grows or shrinks. Knowing how to interpret these forces helps investors make smarter decisions. Being informed and adaptable is what separates those who merely inherit wealth from those who grow it.
Simon Brown, a market commentator, trader and investor, echoes these sentiments. “Your heirs can’t make smart choices if they don’t know what you’ve set up. It’s about more than just having a will — it’s about making sure your heirs understand the plan.”
Words: Mecayla Maseka
Photography: Shutterstock
