LEAVING A LEGACY FOR
BENEFICIARIES LIVING OVERSEAS
To transfer wealth from one generation to the next, comprehensive estate planning is essential, especially if your children have moved overseas. This includes complying with new South African Revenue Service (SARS) requirements for transferring funds abroad. It’s therefore crucial that both you and your beneficiaries have regularised your affairs with SARS – here’s what you need to know.
In April this year, SARS introduced changes to the procedure for transferring more than R1 million out of South Africa, referred to as the Approval International Transfer (AIT). This replaced the foreign investment allowance and emigration tax compliance status application types.
In terms of estate planning and ensuring you can leave an accessible legacy to your offshore beneficiaries without complication, the following need to be considered:
As part of the application to externalise funds to an offshore beneficiary, the following information and documents are required by SARS:
Estate and tax planning have changed significantly over the past few years. There is no one-size-fits-all solution – your estate plan needs to be drawn up with your unique personal circumstances in mind. It’s therefore crucial to seek professional advice, especially if you have assets in multiple jurisdictions.
If you need information or assistance with any aspect of estate planning, please contact Stanley Broun at stanleyb@privatewealth.sanlam.co.za.
The formation and registration of trusts, and the provision of independent trusteeships – both local and offshore.
The creation of BEE, charitable, special and Shariah trusts compliant with regulatory and legislative requirements.
The administration of deceased estates in South Africa and abroad.
Advice on complex structures, asset restructuring and bequests in foreign jurisdictions.
Advice on emigration and immigration, foreign earnings and the application of any double taxation agreements.
Updating trust deeds to ensure they’re in line with the latest changes in the trust environment.
Updating and/or drafting of wills dealing with South African and/or foreign assets.
Advice on the establishment and management of charitable organisations, their tax status and tax deductible donations.
Advice on the potential tax consequences and reporting obligations if you hold a US passport or green card, or if you have children living in the US.
Guidance on the financial implications of life-changing events, such as getting married, divorce or the birth of a child.
