Hugo Blom CFP®, Financial Adviser at Momentum Financial Planning.

As 2026 begins, it offers a natural moment for reflection and renewed focus. For those who have built a successful financial foundation, there comes a time when their attention shifts from earning to enduring. The key question at this point is whether they are continuing to simply accumulate money or intentionally building a legacy.

The difference is not in the size of their portfolio, but in the focus and deliberate action they apply to its transition. Without a structured, long-term plan, the hard-won resources achieved by the first generation are often depleted by the third. This unfortunate pattern is not due to a lack of money, but rather a lack of focused governance and intentional decision-making.

Reframing wealth from accumulation to legacy

Genuine generational family wealth is far more than just financial assets. It is a multi-generational project built on three pillars: financial capital (the money and assets themselves), human capital (the skills, knowledge, and financial literacy of succeeding generations), and social or governance capital (the shared values, communication structures, and formal rules that bind the family and guide the use of capital).

For wealth to endure well beyond the start of a new year, planning must focus equally on all three pillars. Momentum’s Science of Success philosophy is grounded in the idea that success favours the focused. Just as focused effort builds careers and wealth, focused planning is non-negotiable when the goal is to preserve that wealth across decades.

The blueprint for focused legacy action

Building a lasting legacy requires disciplined, intentional action in three important but often overlooked areas. These are the focal points that transform a collection of assets into a sustainable source of family wealth and long-term financial strength. They include:

1. Equipping the next generation with financial literacy and values

A sudden inheritance is often a burden, not a blessing, if the recipients lack the skills to manage it. This is the single greatest point of failure in wealth transfer, which is why it’s important to start the education process now. Education should extend beyond the basics, such as how to open a savings account, and extend to teaching financial governance, risk management, and the difference between capital and income and how each should be treated.

Older generations need to communicate the values that created the wealth to younger generations - diligence, integrity, and discipline. The next generation must understand the "why" behind the assets, not just the "what”.

2. Formalising governance with a family constitution

Businesses are runs with a board, policies, and clear rules. A family's multi-million-rand legacy should not be any less structured. Formal governance prevents disputes, defines roles, and establishes a clear mandate for the purpose of the wealth.

A good idea is to draft a family constitution or charter. This is a non-binding but powerful document that outlines the family mission, rules for distributing capital, guidelines for employment within a family business, and protocols for conflict resolution. This framework acts as a shared operating manual, ensuring that decisions about the family’s wealth are made through objective, focused channels, not emotional ones.

3. Maintaining legal documents including a will

A will is not a once-off chore; it’s a living, breathing document that must reflect the current realities of your assets, family structure, and evolving intentions. An outdated will can nullify all other planning.

Commit to an annual review of all estate planning documents ad don’t forget to verify beneficiary nominations on all retirement funds and insurance policies, as these often supersede the will.

Ensure your documents account for minor children, potential tax liabilities, and the liquidity required to settle the estate efficiently. A focused review ensures your resources pass seamlessly to the right hands at the right time.

Partnering for perpetual prosperity

The challenge of legacy planning is that it demands both objective, technical expertise and deep, intergenerational communication skills - a difficult combination to master alone. Families that partner with professionals who can provide focused structure to translate the available resources and aspirations into a formal, enduring plan tend to be more successful in ensuring a long-term wealth legacy.

Those who prioritise focus and intentional action move beyond merely accumulating money. Not only do they secure their resources, but they also establish a resilient, supportive legacy that will benefit their family for generations to come.

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