5 considerations to ensure intergenerational wealth transfer

By: Natasha Archary

Comprehensive, holistic financial planning and wealth protection are essential to navigate the pitfalls of estate planning in the modern family and business context.

Navin Ramparsad, Head of Financial Planning, Advice, and Product Development at Absa Private Wealth Banking, joins Kaya Biz to share 5 considerations to ensure appropriate intergenerational wealth transfer.

With the traditional family unit, a father, mother, children, and a single jurisdiction significantly evolving over the years, Navin says that even extended family members are coming forward to claim an inheritance after death.

Navin suggests navigating the complexities of intergenerational wealth transfer with a framework called family governance, which will be better suited for families across different jurisdictions, and multiple assets.

“Family governance defines the rules of engagement, provides clarity and helps to create a more harmonious relationship between family members.

Where you have families across jurisdictions, and typically if you have assets across jurisdictions, it is important for the family to engage a professional financial advisor.

Where you have assets across different jurisdictions, you find different laws apply, and that could impact the estate planning intergenerational wealth process.

Engage with a team of professionals because the issues at play can be very technical, requiring specific areas of expertise, so depending on your circumstances and needs, you would typically engage with a financial advisor or planner as your first point of contact.

But, there are other specialists who will be able to fine tune your needs.

Tax from a South Africa perspective is a complex area to navigate in its own right, when you apply a lens of tax across multiple jurisdictions, expert advice is critical.

In South Africa we pay estate duty on estates, however, internationally there’s also death taxes that’s payable, so it’s important that you have the help of a professional.”
Navin Ramparsad, Head of Financial Planning, Advice and Product Development at Absa Private Wealth Banking, shares 5 considerations to ensure appropriate intergenerational wealth transfer.