Page 41 - Nexia SAB&T Estate Planning Guide 2024

u donations to missionaries
u maintenance transfers
u travel allowance (minors entitled to an annual allowance of R200 000)
u study allowance
n Since the relaxation of exchange control, an increasing number of South
Africans have been investing offshore with important consequences for their
estate planning.
n An estate planner who owns offshore assets when he dies will have a foreign
estate that will need to be administered.
n If a South African resident has only a South African Last Will and Testament,
the executor of his estate may have to apply for foreign orders to recognise his
right to deal with the property.
n This could result in delays, problems with foreign language and additional
administration costs.
n It is normally preferable to have a separate foreign Will dealing with offshore
assets, as this will address jurisdiction specific requirements and different
legal systems and simplify the administration of the offshore estate.
n It is important to specify in the foreign Will, that it deals specifically and only
with those foreign assets and in the South African Will, that it deals only with
South African assets, and to bear this in mind when making amendments or
revocations to either of them. It is important that the documents tie in with
each other and that the one does not result in the other being revoked.
n Having separate Wills for South African and foreign assets will not affect
the estate duty payable. Estate duty is payable on all assets, wherever
situated, for a South African resident (except where assets were acquired
by the deceased before he became ordinarily resident for the first time, or
even after he became ordinarily resident, if he acquired the property from a
non-resident donor or non-resident deceased estate).
n It is also important to note that any donation of foreign property or the
donation of any right in foreign property (i.e. located outside of South Africa)
is exempt from donations tax if the donor acquired the property:
i) Before the donor became a resident of South Africa for the first time; or
ii) By inheritance from someone, who, at the date of his death, was not

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