Explore the importance of preparing the next generation for the great wealth transfer, focusing on communication, financial literacy, and building lasting relationships with wealth advisers.
Image: Pexels
Estate planning is often discussed in terms of documents, tax thresholds, and liquidity. But there is another shift happening quietly in the background. A generational shift.
Globally, we are living through what is widely referred to as the great wealth transfer.
Over the next two decades, significant assets will move from one generation to the next. This is not a distant future event. It is already underway. The real question for many families is not only how wealth will transfer, but whether confidence and continuity will transfer with it.
Planning beyond policy cycles
The environment includes fiscal change, regulatory change, and market volatility. But it also includes generational change. Tax rules may adjust. Capital gains thresholds may move. Cross-border allowances may evolve. Those shifts matter. But estate planning that focuses only on structures and not on people is incomplete.
True continuity requires preparation on both sides of the transfer.
Why relationships matter
Research consistently shows that many heirs do not remain with their parents’ adviser after wealth transfers. The reason is rarely technical. It is relational. Younger generations often think differently about money. They are digital experts. They expect seamless access to information. They may prioritise sustainability, global exposure or alternative assets in ways that differ from their parents.
That does not mean the strategy is wrong. It means communication and inclusion matter.
If heirs feel disconnected from the thinking behind the structures, they are more likely to step away from them.
From asset protection to family readiness
Successful wealth transfer is not only about preserving capital. It is about preparing people: specifically the next generation.
Preparation may include:
This is where the broader Nedbank Private Wealth ecosystem becomes relevant.
Nedbank Private Wealth is structured around integrated advice that connects banking, lending, investments, and structuring in one coordinated relationship. That same integrated approach can extend to your family.
Family banking as part of continuity
Family banking is not simply about opening additional accounts. It is about creating one trusted relationship that supports every generation. Your wealth banker becomes the central point of contact, connecting your spouse, partner and children to appropriate services for their life stage. This can include tailored banking, access to investment guidance, education pathways and global opportunities such as NexLegacy and Crimson Education.
When younger family members already have a relationship in place, wealth transfer becomes less abrupt. It feels like progression rather than disruption.
Connecting structure and behaviour
The technical components of estate planning remain essential. Wills must be valid. Liquidity must be planned. Structures must be aligned with current regulations. But behaviour determines whether those structures endure. If the next generation understands the thinking behind the plan, they are more likely to preserve and grow it. If they do not, the plan may unravel despite careful drafting.
If wealth had to change hands tomorrow, would the next generation feel prepared?
Planning beyond the Budget means looking past annual rule changes and focusing on long-term continuity. Preparing the next generation is not a separate exercise from estate planning. It is a central part of it.
* Klee is the financial planning executive at Nedbank.
PERSONAL FINANCE