Successful Wealth Transfer: Preparing The Next Generation 

Published 23 days ago
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There has been much talk about the ‘Great Wealth Transfer’, which is set to bring about a seismic shift in assets within the next 20 years. 

According to reports, an estimated $84 trillion is expected to pass to Generation X, Millennials and Gen Z heirs, mostly from the so-called Baby Boomers. Given the increasing trend within this generation towards ‘giving while living’, the impact of this transfer of wealth may be felt even sooner than anticipated. 

“The key to a smooth transition of wealth is ensuring that the next generation is prepared and equipped to manage it. Instead of only passing down financial assets, it is imperative for families to also transfer knowledge, skills, and experience,” says Lucratia Mathe, Head of Client Value Proposition at Standard Bank Wealth and Investment. 

Lucratia Mathe, Head of Client Value Proposition at Standard Bank Wealth and Investment. 

“Navigating inheritance is not just about financial stability, it is also about fostering understanding between family members and the values that drive them. There may be fundamental differences in attitudes between those who have built the wealth and those who stand to inherit it, so it is important to focus on the family’s core values and legacy objectives.” 

According to Mathe, the first principle of wealth transition is understanding where a family has come from, where it wants to go, and how it wants to get there. This includes an appreciation of the history and origins of the family’s wealth, their cultural values, patterns of governance and personal relationships, as well as their vision for the future. 

“As Africa’s leading wealth manager, our goal is to help our clients and their families to develop dynamic and future-proof wealth management strategies that will enable them to build and preserve their wealth so they can leave a lasting legacy,” she says. 

Mathe believes that this can only be achieved when the assets being transferred are placed in the hands of heirs who’ve been prepared to receive them. 


“This is the reason we developed our Leadership Academy Program, an initiative designed to empower and equip our next generation of clients for successful wealth transfer.” 

Based around the four tenets of financial literacy; entrepreneurship and innovation; mental wellness; and social impact, Wealth and Investment’s Leadership Academies encourage delegates to deepen their knowledge of the world of wealth through experiential learning opportunities, exposure to experts and the exploration of their own personal strengths. “The more information the next generation has about their options, the better informed decisions they will be able to make when it comes to managing their inherited wealth,” says Mathe. 

“Whether this involves pursuing their own business ventures, or continuing to grow the family’s existing business and wealth exponentially, effective wealth planning should start with the end goal in mind.” 

By having a clear objective, and adopting an intentional entrepreneurial agenda, families can empower the next generation to achieve the goals they have set for themselves. For the younger generation, this may involve integrating their personal value system into the family’s one, to ensure the highest probability of success – and the least amount of risk. 


“The current generation is concerned about the future and about making a positive social impact, and this will likely affect their investment decisions,” says Mathe. 

“Younger investors are more likely to consider sustainable and impact investing when they are deciding what to do with their investible assets.” 

Mathe adds, “At Wealth and Investment, we recognize that safeguarding and augmenting wealth takes time, effort, and discipline. As such, we place great emphasis on supporting our next generation clients throughout their wealth journeys.” 

“To quote James E. Hughes, Jr, renowned author and expert on family governance and wealth preservation, ‘Founders create wealth, but heirs create legacies.’ Through initiatives like our Leadership Academy program, we can ensure that the ‘Great Wealth Transfer’ is managed successfully for both our clients and their heirs in order to secure a lasting legacy.” 


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