Generational Wealth | June 2026

legatus — Mon, 06 Jul 2026 09:59:41 +0000

The Legatus Times

June / July 2026 Edition

Generational wealth is a value that outlives the person who built it, passing intact to the next generation instead of dissolving with the estate that created it.

It’s more than money in the bank. It’s the family home, a business, investments, policies, and the structures that decide where they go when you can no longer. The defining feature isn’t the size of the estate; it’s continuity. Wealth that is spent, taxed away, or lost to disputes never becomes generational. Wealth that is protected and deliberately passed on endures. That difference comes down to one thing: planning.

Estate planning arranges your affairs so your assets reach the people you choose,
in the way you choose, at the lowest cost and least delay. A sound plan does four things at once:

Directs your assets to the right heirs, on your terms.

Provides liquidity, so heirs aren’t forced to sell the home or business to settle debts and duties.

Minimises estate duty, capital gains tax, and fees through lawful structure.

Prevents disputes by replacing uncertainty with a clear, valid plan.

It isn’t one document: it’s your will, trusts, policies, and nominations working together.

A will is the most important document you’ll ever sign. Under the Wills Act, it names your executor, appoints guardians for your children, and sets out exactly who inherits.

Die without one, and you die intestate. The Intestate Succession Act decides for you. A life partner may receive nothing; a stranger may be appointed to wind up your estate. An outdated will can be as damaging as none, so it should be drafted professionally and reviewed after every major life change.

Created in your will and activated on your death, a testamentary trust lets your protection continue. Some heirs shouldn’t inherit outright, a minor can’t manage assets, a dependant may need lifelong care, and a young adult may not be ready.

Instead of paying out directly, assets are held by trustees you appoint, under rules you set. A trust can keep minors’ inheritances out of the Guardian’s Fund, shield assets from creditors or divorce, release capital in stages, and provide for a vulnerable dependant for life. It’s how a will becomes a lasting structure, the real engine of generational wealth.

The day your estate changes hands is the one day you can’t manage it. Without a plan, the law picks your heirs, a stranger administers your affairs, taxes are paid at the maximum, and assets freeze while your family grieves.

In South Africa, the first R3.5 million is exempt; above that, duty runs at 20% (25% over R30 million). Spousal and rollover relief can ease the burden, but only if the structure exists.

Legatus Trust

Will Drafting | Deceased Estate Administration | Trust Administration

Email: info@legatus.co.za | Tel: 0861 722 626 | Website: legatus.co.za

This newsletter is provided for general information purposes and should not be regarded as formal legal, fiduciary, tax, or financial advice. Please consult a qualified professional for advice specific to your circumstances.

The post Generational Wealth | June 2026 first appeared on Legatus.

Youth and Wills in South Africa | May 2026

legatus — Mon, 06 Jul 2026 09:41:08 +0000

The Legatus Times

May / June 2026 Edition

As we approach Youth Day in June, the spotlight naturally shifts to the dreams, potential, and challenges of the younger generation in South Africa. Traditionally, we commemorate this day by looking back at history, but true empowerment lies in looking forward as well. For parents, grandparents, and young professionals, this means recognizing a powerful, often-overlooked truth: the protection of our youth begins today with drafting a valid will.

Generational Wealth Starts with Planning

In South Africa, the term "generational wealth" is often associated with large corporate trusts or wealthy dynasties. The reality, however, is that wealth is built and eroded at many levels. Without a structured estate plan, even the smallest inheritance, a modest life insurance policy, a family home, or basic savings, can be lost to unnecessary administration, family disputes, or harsh legal constraint

Minor Children and the Guardian’s Fund

South African law is strict when it comes to the protection of minors (children under 18 years old). If you were to pass away without a will (intestate), your minor children are not permitted to inherit cash or movable assets directly. These assets are converted into cash and paid into the state-administered Guardian’s Fund.

While the Guardian’s Fund exists to safeguard the funds, accessing them for daily needs such as school fees, medical care, and living expenses is often cumbersome and time-consuming. This places an enormous financial and emotional burden on the surviving guardians during a time when the children are already experiencing trauma.

Empowerment Through a Will

By acting proactively, we can protect the youth and ensure that the fruits of your hard work empower them directly:

Maintenance Trusts (Testamentary Trusts)

By stipulating a testamentary trust in your will, assets are securely managed by trustees you trust, specifically for the benefit of your children's education and living expenses, without state intervention.

Appointment of Guardians

You choose exactly who will care for your children, instead of leaving that decision to the courts.

Financial Literacy

By introducing the conversation about wills and inheritances early on, we cultivate a culture of financial responsibility within the youth.

Secure Today. Empower Tomorrow.

Protecting the youth is not just about the inheritance we leave behind, but about the platform we build for them to stand on. A valid will is the foundation of that platform. It transforms uncertainty into stability and ensures that the next generation does not have to start from scratch but can instead build upon what has already been achieved.

Let us commemorate this Youth Day with action. Secure your today, so we can empower their tomorrow.

Call to Action

Protect the next generation with a valid will.

Contact Legatus Trust to draft or review your will.

Contact our Will Drafting team

Legatus Trust

Will Drafting | Deceased Estate Administration | Trust Administration

Email: info@legatus.co.za | Tel: 0861 722 626 | Website: legatus.co.za

The post Youth and Wills in South Africa | May 2026 first appeared on Legatus.