Countless debates, articles and even funny adverts have been dedicated to the topic of succession as we near the “great wealth transfer” from the baby boomers to their successors. We are confronted with issues like situs tax, offshore probate, updating wills and taking out life assurance, as if that is the magic bullet that will solve all our succession issues.

People go to great lengths to plan and prepare for uncertainty – investments, markets, health, global warming – even the possibility of world war and mutual destruction.

Yet, many people still procrastinate when it comes to planning for the one certainty we have—the consequences of the inevitability of death. Indeed, it is the only certainty we can plan for, yet we don’t.

Why is this?

Perhaps it’s time to reconsider how we define succession.

Each of us enters life with a unique combination of DNA from generations before us. We carry the hopes and dreams that filled the hearts of those who created us. In the grand scheme of succession, wealth, status and material possessions are of negligible importance, almost a hindrance really, merely an administrative process.

For instance, the value of R50,000 left to an heir in 2000 might have seemed significant at the time, but a few decades later, it appears immaterial.

So, what can be passed from one generation to the next without losing value? What truly lasts?

DNA does, but it is refreshed and renewed with each succession. Education does, as it is a process of continuous renewal and progression. Human ability is also transferred from one person to the next. Initially, this is a biological ability, but through parenting, example-setting and mentorship, mental and psychological context is given to this ability, which eventually defines us.

Herein lies the answer.

Most discussions about succession focus on the administration of death rather than true succession. Like the R50,000 in 2000, it seems significant and worthy of attention.

However, true succession is much deeper and does not fall within the remit of a bank, trust company, attorney, or accountant. True succession lies within the quality conversations that happen between generations. Only you can have those quality conversations, and they can only happen while you are alive.

Please do it – the value of these conversations is truly lasting.

It is our job to worry about the legal and administrative aspects of death and to optimise the financial succession.  The numbers and the law are there to merely support your quality conversations and decisions, and it’s easy.

Let’s make sure that we are not part of the following statistics:

Recent Statistics on Succession Planning

• Lack of Preparedness: A 2023 survey found that 67% of adults do not have a will or any form of estate planning in place.
• Generational Wealth Transfer: It is estimated that $84 trillion will be transferred from Baby Boomers to younger generations over the next 20 years.
• Business Succession: According to a 2024 report, 60% of family-owned businesses do not have a formal succession plan.
• Awareness and Education: A 2024 study revealed that 45% of people are unaware of the legal requirements for succession planning.

These statistics underscore the critical need for effective succession planning.

Join us on this journey to ensure your legacy is thoughtfully and successfully passed on to current and future generations.

Let’s start the conversation today!