Estates and Offshore Planning
Estate delays can cause significant financial hardship. A few strategic adjustments today can ensure a seamless transition for your loved ones.
⚡ Bypassing the Liquidation Process
Attaching beneficiaries to your investments allows proceeds to be paid directly to your spouse or children. While these remain assets for estate duty purposes, they bypass the lengthy executor process, saving you executor fees and providing your family with immediate liquidity.
Children Living Overseas?
Inheriting from a South African estate is straightforward for non-residents, provided they have their documentation in order. Encourage them to secure copies of the following now:
The Case for Offshore Assets
Diversifying physically offshore reduces country risk (South Africa accounts for less than 1% of world GDP) and provides exposure to superior returns.
| Asset Class (as at 31 March 2022) | 5 Years | 10 Years | 15 Years |
|---|---|---|---|
| Global Equity (Rand) | 13.6% | 17.3% | 11.6% |
| Local Equity | 8.1% | 10.6% | 9.7% |
| Local Cash | 6.1% | 6.1% | 6.9% |
| Inflation (CPI) | 4.2% | 5.0% | 5.6% |
How much can you move?
Individuals can move up to R1 million per year (SDA) within days. An additional R10 million (FIA) is possible if your tax affairs are in order. Using appropriate structures can ensure assets are transferred to heirs in as little as three weeks, even if the local estate takes years.
Planning now saves headaches later. Get the right structures in place today.
Created by: Kenny Meiring, CFP® | MBA
Succession Financial Planning
