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Emigration Estate Planning and Administration

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Page 1: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

EmigrationEstate Planning and Administration

Page 2: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

Issues

Estate Planning and Wills:

South African and Non-South African assets

South African requirements on death

Estate Planning and Tax:

Income Tax

Capital Gains Tax

Donations Tax

Estate Duty

Martie Foster - Corporate Tax Consultant

Page 3: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

Wills

South African and non-South African assets

One will which deals with worldwide estate?

Procedures vary significantly from country to country

Succession law:

Freedom to bequeath at will

Forced heirship

Martie Foster - Corporate Tax Consultant

Page 4: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

Wills

South African requirements on death

Reporting of death

When?

Who must report?

Documentation

South African estate exceeds R125 000

South African estate less than R125 000

No South African will?

Martie Foster - Corporate Tax Consultant

Page 5: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

Tax

Income Tax

Residence

Ordinary residence

Physical presence test

Double tax agreement

No double tax agreement

Non-resident

Martie Foster - Corporate Tax Consultant

Page 6: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

Tax

Capital Gains Tax

Resident v non-resident

Paragraph 12(2)(a)

Applies to all assets except for:

Immovable property in South Africa or any right or interest in such property

Primary residence exclusion

Assets attributable to a permanent establishment

Could also apply to resident entities effectively managed and controlled by emigrant

Martie Foster - Corporate Tax Consultant

Page 7: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

Tax

Donations Tax

Payable by residents

Opportunities?

Martie Foster - Corporate Tax Consultant

Page 8: Emigration Estate Planning and Administration. Issues  Estate Planning and Wills:  South African and Non-South African assets  South African requirements

Tax

Estate Duty

Residents v non-residents

Opportunities?

Martie Foster - Corporate Tax Consultant