Wealth is not just about numbers – it’s about a lasting legacy. For South African families the challenge is to not just grow assets, but to ensure that it endures for future generations.
First things first, a clear plan is required to prevent an estate being eroded by taxes, fees, and rushed decisions, leaving heirs with less than intended.
Roy Bregman of Bregman Moodley Attorneys Inc identifies three pillars that underpin an effective estate plan (https://bregmans.co.za/2026/04/24/estate-planning-for-high-net-worth-individuals-in-south-africa-a-specialists-guide/).
The first is asset protection during life. Property held in your personal name is exposed to creditors, litigation, and estate duty. He notes that, “Assets held in a properly structured discretionary living trust are, in general, protected. The trust owns the assets – not you – so they do not form part of your deceased estate and do not attract executor’s fees or estate duty.”
The second pillar is succession planning. According to Moodley, the real work lies in structuring the estate before death – deciding which assets belong in trust, which pass directly to heirs, and how business interests are transferred. With regard to offshore assets, he highlights that a “South African will does not govern foreign property – each jurisdiction has its own succession law, and many require a local will or a grant of probate in that country. Failure to plan for this can mean that offshore assets are administered separately, at additional cost, with potential succession outcomes that differ from your South African will.”
The third pillar is estate liquidity. Taxes, executor’s fees, and transfer costs add up. Without accessible cash, executors might forge ahead with rushed sales of properties etc. He adds, “Life insurance – properly structured and held outside the dutiable estate where possible – provides the liquidity your estate needs without distressing asset sales.”
From a legal perspective, thing to consider include:
- Despite the popularity of digital signatures, South African law still requires a wet‑ink signature with two witnesses for a will.
- The 2026 Budget raised the donations tax exemption to R150 000 per person per year.
- Capital gains tax exclusion at death increased to R440 000.
- Estate duty rates remain unchanged: 20% up to R30 million and 25% above, with the static R3.5 million abatement and spousal rollover still in place.
Prepping the next generation
While many wealthy individuals prioritise structures, one critical question remains: will their heirs know what to do with the wealth they inherit?
According to Shaun Meintjes, Financial Adviser and Franchise Principal at Consult by Momentum, “Preparing your children for wealth starts long before an actual inheritance – you need to prepare them to manage it with responsibility and perspective.” He notes that leaving money without preparing heirs to handle it can set them up for failure.
