Most people in South Africa have a friend or family member that has emigrated to countries like Australia, the Netherlands, and Canada for professional or personal reasons. Oftentimes these South Africans still have some ties to the local economy such as a property, bank account or other asset that they leave behind. Conversely, in the last few years there has been a massive influx of foreign citizens drawn to our shores and making South Africa their home. When you also consider the Internet and its effects on globalisation, it can certainly feel as if borders are melting away. As such, it’s becoming commonplace to have assets all over the world.
It’s always a good idea to make sure your affairs are in order no matter where you are on the globe. Here are some topics to keep in mind when thinking about estate planning –
Wills:
Any professional worth their salt will advise you to execute a Will in each country where you have assets. It is necessary for both legal and practical reasons. Legally, the requirements for what constitutes a valid Will can differ drastically from country to country. The laws of succession can also influence how your estate will devolve to your heirs, as some countries have limited freedom of testation. In other words, the law can dictate what percentage your heirs will receive from your estate. Practically, most countries require an originally signed Will to be lodged with their authorities. In cases where it is not possible, they require court-certified copies of the documents, as is the case in South Africa. This is usually a long and expensive delay in the administration process.
Tax:
Tax is an inescapable eventuality unless you are reading this in Monaco or the Bahamas. For the rest of the world however, it is important to be mindful of tax consequences when you are doing estate planning across multiple jurisdictions. Each country will have their own laws of assessing what kind of taxes you or your estate are obliged to pay and at what rates. South Africa has tax treaties with several countries to mitigate the need to pay tax twice on the same assets, however there are many countries where this relief is not available. Thoroughly planning how to approach this while you are alive can save your deceased estate a significant amount of money and difficulty.
Record-keeping:
From a practical perspective, the people who need to deal with your estate need some way to know what assets you have and where they are located. The same goes for Wills and other important documents. Whether it’s a handwritten list in your safe or an electronic document stored in the cloud, find the best way for you to keep a record of the most important information your loved ones will need to effectively administer your estate.
The intent of this article is to highlight that even though the world feels small, from a legal perspective there are very clear separations between countries. Discuss your concerns with professionals in each country for the best and accurate estate planning advice. So, when in Rome do as the Romans do and get an Italian lawyer. When in South Africa, contact Jeanne Stander at jeanne@curranattorneys.co.za
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