Building Generational Wealth: How to Create Lasting Financial Value for Your Family - Moneyweb & 10X

Planning for a future without you in it can feel uncomfortable and overwhelming, yet it’s one of the most important things you can do for your family. Passing on wealth efficiently, without losing a large portion to taxes and fees, requires careful thought and goes far beyond simply writing a will. If you want to make smart decisions that benefit your children and grandchildren, it’s worth understanding the different investment vehicles available, the tax implications they carry, and some of the wealth transfer strategies that many South Africans aren’t aware of.

In this session, MoneywebNOW host Simon Brown and Senior Investment Consultant Michael Rossouw from 10X Investments cover everything from how to structure your estate to how different investment vehicles behave at death, plus important tips on communication and legacy planning.

This webinar is perfect for:

• Parents wanting to give their children a real financial head start
• Anyone serious about building wealth that lasts beyond their lifetime
• Investors looking to reduce tax exposure and protect their assets
• People who want to use their retirement savings more effectively
• Anyone wanting to understand the rules around wealth transfer for basic investment products

We’ve summarised the key discussion points below.

00:06 Introduction to generational wealth 03:05 The three main challenges: taxes, fees, and liquidity issues 04:47 Donations as a planning tool 06:12 Discretionary investments, retirement savings, and post-retirement products 12:24 Property and liquidity challenges 15:56 Why you should start early 16:09 The importance of communication with family members 22:36 Life insurance for estate liquidity 28:48 Retirement annuities after retirement 37:05 Passing on knowledge and networks

Understanding the challenges of wealth transfer

Planning for generational wealth is about more than naming beneficiaries. Taxes and fees can erode the value of an estate by 20–25% or more. Liquidity is also critical: property portfolios or illiquid investments may force heirs to sell at inopportune times simply to pay taxes and executor’s fees. These issues can materially reduce the value that ultimately reaches your children and grandchildren.

Donating during your lifetime

One of the simplest ways to manage the eventual tax burden is to reduce the size of your estate while you’re alive. Spouses can donate freely between one another, but donations to children or others are capped at R100,000 per year per donor. Anything above that attracts a 20% donations tax so it is worth planning around if you want to support your family early.

Investment vehicles and how they behave at death

Not all investments are treated equally when it comes to inheritance:

• Discretionary investments (like unit trusts, share portfolios, and bank deposits) form part of your estate and attract estate duty and executor’s fees.
• Retirement savings (pension, provident, preservation funds, retirement annuities) can transfer more efficiently but require understanding how beneficiaries can elect lump sums or annuities.
• Post-retirement income products (living annuities) can be particularly estate-efficient: they transfer directly to nominated beneficiaries, avoid executor’s fees and estate duty, and continue outside of the estate winding-up process.

The property question

Property is often viewed as a reliable long-term store of wealth. But property-heavy estates carry significant liquidity risk. In the absence of liquid cash to pay taxes and costs, properties may have to be sold quickly, at a discount, and incur additional sale costs which reduces the wealth that is passed on.

Why early planning matters

Generational wealth starts today. If you leave it too late, you may encounter limits that reduce your ability to pass wealth efficiently. Careful planning allows families to reduce taxes, manage liquidity risk, and avoid unintended delays or forced asset sales.

The importance of open communication

A plan is only useful if your heirs understand it. Discussing your estate planning decisions helps ensure that your family can make informed choices when the time comes. Communication is key: letting your spouse or children know about over-contributions to retirement products, how to treat annuities or which assets to prioritise for liquidity can help them avoid costly mistakes.

Life insurance as a liquidity tool

Life cover can help provide the cash your estate may need to settle taxes and fees quickly, but premiums rise sharply after age 65. This makes it important to evaluate carefully whether your family would benefit from keeping a life policy in place or whether the funds could be better invested elsewhere.

The special role of retirement annuities for estate planning

Even in retirement, it’s possible to contribute to retirement annuities and claim a tax deduction, effectively recycling taxable income into an estate-efficient vehicle. This can reduce your current tax liability, while also moving assets outside of the estate to avoid executor’s fees and estate duty later.

Passing on more than money

Generational wealth isn’t just about rands and cents. Knowledge, networks and experience can be equally valuable legacies. Sharing your financial expertise, introducing family members to your advisors, and preparing heirs for the responsibility of managing assets are key parts of a successful wealth transfer.

10X is here to empower you

Planning for your family’s future can seem complex and intimidating, but knowledge is power. By understanding the options available, getting the right advice, and starting early, you can make better decisions and create lasting value for your children and grandchildren. Whether you’re just starting to think about your family’s financial future or looking to optimise your current approach, it will help you make smarter decisions that benefit multiple generations.

If you have any follow up questions for Michael on the best way to build generational wealth, please get in touch here.