| 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outdated will can be as damaging as none, so it should be drafted professionally and reviewed after every major life change.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.
|
|
