‍Hilary Dudley, Managing Director of Citadel Fiduciary

Across the world’s wealthiest families, the transfer of assets from one generation to the next is rarely straightforward. History shows that without patience, delayed gratification, stewardship and discipline, fortunes can evaporate as quickly as they are made. The responsibility of managing and preserving wealth goes far beyond financial planning; it demands a long-term vision that equips heirs to steward assets responsibly.

This theme resonates in South Africa (SA), where rising life expectancy, extended retirements and global migration patterns within families are reshaping the landscape of intergenerational wealth transfer. According to Cerulli Associates, R1,817 trillion^[1] is expected to change hands globally by 2048, much of it flowing through high-net-worth families. Closer to home, SA’s life expectancy has climbed to 64 years for men and nearly 70 for women, with affluent families often living well into their 90s. In addition, the average age of retirement has dropped from 70 to 60 or 65, meaning people can now foreseeably spend a full third of their life in retirement, a factor that has multiple implications for wealth transfer to the next generation.

“As we live longer, families are juggling wealth across three and sometimes four generations,” says Hilary Dudley, Managing Director of Citadel Fiduciary. “Instead of receiving inheritances in their 40s or 50s, many heirs only inherit much later in life, often when they are already retired themselves.”

WHY DELAY CAN BE A SAFEGUARD

While delayed inheritance poses challenges earlier in the life of heirs, as they are forced to make their own financial way, Dudley notes that it can also protect families from premature depletion of wealth. “When children are encouraged to build their own skills, creativity, careers and independence, they gain a deeper respect for money and are less likely to waste it. In my experience, those who wait often become more grounded, well-rounded individuals who contribute meaningfully to society.”

SUPPORTING WITHOUT CREATING DEPENDENCY

Citadel’s advisors see many families navigating a measured approach: supporting education, property, or business ventures without transferring the bulk of wealth too early.

“Parents derive immense satisfaction from seeing the next generation benefit while they are alive,” Dudley explains. “But it’s vital to strike a balance. Too much too soon risks creating dependency and stifling creativity and self-reliance.”

MANAGING COMPLEX ESTATES ACROSS BORDERS

As families become more global, wealth planning must also adapt. “It’s impossible to foresee every permutation across multiple generations and jurisdictions,” Dudley cautions. “The key is flexibility – appointing the right trustees, setting out shared family goals and ensuring custodians have the ability to respond to changing laws and circumstances across various jurisdictions.”

TOOLS FOR MEASURED, CONSIDERED PRESERVATION OF WEALTH

Dudley points to trusts, structured wills and professional advisory services as the most effective tools for long-term wealth preservation. “Trusts allow for measured, considered transfer of wealth while protecting assets from unnecessary risks,” she explains. “Careful drafting ensures they can evolve with the times. When supported by experienced advisors, families can avoid financial surprises at moments of bereavement, when they are most vulnerable.”

THE CONVERSATION FAMILIES SHOULD NOT AVOID

Ultimately, Dudley contends, avoiding discussions about inheritance can be the greatest risk of all.
“Don’t be afraid to talk about the ‘D word’ with your family,” she says. “Death and dying are inevitable for us all and by normalising those conversations, we also normalise discussions about finances. It ensures everyone is equipped and legacies are managed without added shock or strain.”

CONCLUSION

Dudley says, it is important to clearly share the family’s long-term ‘financial mission’ and the strategy that has been put in place to achieve it, to give heirs insight into their roles, responsibilities and privileges. Without a family financial roadmap, it will be very difficult to protect or even amplify the family’s wealth for generations to come. “It is important to empower your heirs to take on some responsibility while you are still around and to structure your legal documents and arrangements in such a way that you continue to empower them even after your death. This is possible to achieve, by partnering with a reputable wealth manager that understands offshore structuring, trusts and other modern tools for long-term wealth preservation.”