Living abroad as a South African can be an exciting as well as challenging journey. But it’s essential to remember that your tax and estate planning at home doesn’t miss out because you are out. In real, it may become more crucial to work with accountants in South Africa and plan everything wisely. Here are our top considerations for overseas South Africans when it comes to estate planning:
Understand your residency status
The first thing you need to consider when you are overseas is about your residency status. Find out if you are considered a tax resident in South Africa or your host country. Or both in some cases. This can affect your tax planning significantly because tax laws differ from one country to another. You must seek professional estate structuring services to avoid tax headaches in this.
International estate taxation
This is another vital consideration when planning for taxes. Most countries levy taxes for an estate that falls within their borders. South Africa does this too. So, you must understand the implications it can have on your planning for the future. You may face a double taxation scenario if both countries are eligible to claim tax on your assets. Find out if South Africa has taxation treaties with your host country and how you can benefit from them.
Ensure smooth asset transfer
If you have assets scattered around countries, you will need help managing these. Ensure that your assets are passed smoothly in the aspect of your estate planning. For this, you need to craft comprehensive, up-to-date estate planning and wills. It would help if you considered appointing an executor who can find out complexities related to your situation. Don’t forget to consider assets like offshore bank accounts, properties, and investments when planning your estate.
Currency Regulations and inheritance laws
It would be best if you understood how currency regulations can impact inheritance laws in your host country. The South African Reserve Bank controls how assets move across borders. So, failing to adhere to the rules and guidelines set can lead to complications in the future. You must seek guidance to understand these regulations and ensure a smooth transfer of assets in this situation.
In conclusion, South Africans who are living abroad cannot afford to neglect estate planning. You must understand all aspects of government regulations that can affect your planning if you are living overseas. Don’t forget to get professional guidance to ensure a seamless transition of assets and related planning.
Get in touch with an estate planning attorney at https://omne.co.za/
Original Source: https://bit.ly/3SH0jBy
