Page 42 - Nexia SAB&T Estate Planning Guide 2024

usually resident in South Africa or in consequence of a donation from a non-
resident donor (other than a company); or
iii) Using the funds from the sale of the property referred to in (i) and (ii)
above, or if the donor sold such property and replaced it with other
properties (also located outside South Africa and purchased from the
returns on the sale of the property).
Non-residents
n Immovable property and movable property situated outside of South Africa,
and which belong to a non-resident, are not subject to estate duty in South
Africa.
n The estate of a non-resident pays estate duty on properties located in South
Africa (subject to double tax treaty relief).
n When determining estate duty liability, it is important to establish:
u the residence of a person
u The location of the asset(s)
n A non-resident is free to donate the whole or part of his South African estate
without any liability for donations tax.
This is a complex area and it is advisable to seek professional advice when
considering the impact of investing offshore on the estate plan.

BUSINESS SUCCESSION PLANNING

n Any good estate planning exercise must involve succession planning of an
estate planner’s business, where applicable.
n The estate planner needs to make plans for who will succeed him, who may
purchase his shares on his death, whether the business should be sold, or
who will have the rights to income generated by the business.
Partnerships /shareholders /members
n In the case of a partnership, it is automatically dissolved when one partner
dies. All the surviving partner(s) can do is wind up the affairs of the
partnership.

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