Estate planning and Legacy planning

'ONE day when I’m big!' How many times have we uttered those words as children when dreaming about our future? And then, quite suddenly, we find ourselves ‘adulting’ and reflecting on the lessons we've learned and considering the legacy we will be leaving the next generation.

- LINDA KLEYNSCHELDT

A well-planned legacy is one of the most meaningful gifts you can leave to your heirs. It is an intentional act to shape the future and ensure that the values, resources, and wisdom cultivated throughout a lifetime continue to benefit generations to come. Legacy planning is not limited to financial matters - it is a holistic process that weaves together family, tradition, and personal principles.

When it comes to the financial aspect, we frequently use phrases such as ‘leaving a legacy’, ‘intergenerational wealth transfer, and ‘succession planning’ when referring to the transfer of assets to beneficiaries. This can be done in various ways and at different times - while you are alive and even after you have passed away - provided there is a plan in place to do so, namely your estate plan.

Legacy planning delves a level deeper than estate planning.

Estate planning refers to growing and protecting your assets over your lifetime and encompasses how those assets are managed and transferred after you pass away. This includes ensuring that there is enough liquidity in your estate to settle debts (such as outstanding mortgage loans) and to cover estate expenses (like executor’s fees and estate duty).