In the world of wealth, few things are more certain and more precarious than transition. The transfer of wealth and family business from one generation to the next can be a testing time for a family’s legacy. Far too often, it’s the moment when things begin to unravel.
This transition shouldn't be a leap into the unknown. That’s why the next generation, the custodians of tomorrow, are a central pillar of our family office strategy.
Globally, the demand for family offices has surged by approximately 31% over the past decade, and South Africa is experiencing a boom of its own. This elite form of wealth management is evolving rapidly in the country. Multigenerational family offices are becoming more complex, requiring stronger governance structures, while a new wave of first-generation wealth creators is finding that their fortunes have outgrown the services of traditional wealth managers.
According to Deloitte, there are an estimated 8,030 single family offices in the world today, up from 6,130 in 2019. This figure is projected to grow to over 10,700 by 2030, marking a 75% increase over roughly 10 years. While Africa still represents a small share of the global footprint, the trend is clear: there’s a growing number of families in South Africa and across the continent in need of structured, long-term wealth management and legacy planning.
But as more African families reach this level of wealth, one reality becomes clear: without intentional succession planning and early involvement of the next generation, even the most sophisticated structures can fall short.
All too often, we witness the consequences of poor planning: an unprepared heir inherits vast wealth and responsibility, only to falter under the pressure. Sometimes, it’s the lack of engagement with the next generation’s perspectives that proves costly.
There are many examples around the world of successful families who’ve navigated generational transitions and continued to grow and thrive, even through challenging times.
Although every family’s situation is unique, we’ve supported many families by starting financial education for their children at a relatively young age.
Today, many of these young adults actively contribute in board meetings, challenge strategies, and offer fresh insights, particularly in areas such as sustainability and digital innovation. While they may not lead day-to-day operations, they are empowered owners and responsible stewards of the family's legacy.
Another benefit of including the next generation is that identifying the right person to lead a family business is often challenging
Another benefit of including the next generation is that identifying the “right person” to lead a family business or enterprise is often challenging, and it’s not always the person who appears to be the obvious choice. Sometimes, the most suitable candidate may even be a non-family member. The inclusion of other family members, and the value they bring in broader roles, should never be underestimated.
Ownership vs. Operation: know the difference
Succession doesn’t necessarily mean putting the next generation in charge of day-to-day operations. Control and management can be separated. But maintaining influence requires the next generation to understand the structures, governance and values behind the wealth.
This is why education, exposure and inclusion must happen early. Our family office encourages families to begin this process sooner rather than later. It’s not about teaching them how to balance spreadsheets. It’s about building understanding of how family trusts work, what drives investment performance, how to evaluate risk and when to seek guidance.
When this foundation is laid early, it fosters stronger cohesion between generations. The blend of experience, knowledge and fresh perspectives can become a powerful recipe for success. One of the most rewarding outcomes we’ve seen is when the next generation asks tough questions, not to challenge but out of genuine interest and a desire to improve. This can spark progress, strengthen governance, and uncover blind spots.
Ultimately, legacy isn’t about preference, it’s about readiness. You might hope to keep control within the family or hand it to a preferred successor, but hope is not a strategy. A real strategy ensures each successor understands both their rights and their responsibilities.
In South Africa, inheritance is a privilege, not a right. With no legal guarantee of succession, careful planning is essential. Family offices are uniquely positioned to facilitate this process. At Standard Bank Wealth and Investment, we don’t just manage portfolios, we guide families through generational transitions with care, structure and foresight. Because every family is different and there’s no one-size-fits-all approach.
* Viljoen is head of family office, Standard Bank Wealth and Investment South Africa
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