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Provided by the South African National Department of Health
Securing a legacy for
generations to come
Family fortunes are typically squandered by the end of the next generation – mainly because heirs are completely unprepared for inheriting substantial assets. Research is increasingly showing that the successful transfer of wealth from one generation to another depends on far more than just financial education, however. It can’t just be about wealth – equally crucial are the set of values and the legacy associated with the family wealth.
The 2016 Knight Frank Wealth Report revealed that a lack of communication and trust between the first and second generations is one of the main reasons why heirs are unprepared to take on their new role as custodians or stewards of family wealth.
Why do families fail to communicate about such an important aspect of the future well-being of the next generation? The main reasons cited by researchers include not wanting to face up to or speak about the older generation’s mortality, not making or having the time to do so, or not wanting to disclose financial details to children or a spouse.
The conversations required are, however, about so much more than just financial matters. Financial education is of course imperative, but equally important for the successful retention of wealth by the next generation is for all family members to ‘buy in’ to a set of agreed family values, as well as the legacy with which the family wishes to be identified, leave behind and be remembered by.
How can you ensure your wealth is transformed into a lasting legacy during its transfer to the next generation? We’ve identified the following steps:
Our Fiduciary and Tax specialists can assist you in implementing these steps – contact Marteen Michau at marteenm@privatewealth.sanlam.co.za or on 011 778 6656.
The formation and registration of trusts, and the provision of independent trusteeships – both local and offshore.
The creation of BEE, charitable, special and Shariah trusts compliant with regulatory and legislative requirements.
The administration of deceased estates in South Africa and abroad.
Advice on complex structures, asset restructuring and bequests in foreign jurisdictions.
Advice on emigration and immigration, foreign earnings and the application of any double taxation agreements.
Updating trust deeds to ensure they’re in line with the latest changes in the trust environment.
Updating and/or drafting of wills dealing with South African and/or foreign assets.
Advice on the establishment and management of charitable organisations, their tax status and tax deductible donations.
Advice on the potential tax consequences and reporting obligations if you hold a US passport or green card, or if you have children living in the US.
Guidance on the financial implications of life-changing events, such as getting married, divorce or the birth of a child.
Expert advice is crucial in dealing with cross-border estate and tax planning.
Stanley Broun has spent 10 years in Fiduciary And Tax.
Have a question for Stanley?
