Off-Shore Assets

I’m a South African with assets overseas. What factors do I need to consider for my estate planning, and do I need more than one Will?

Owning assets abroad adds complexity, but here’s what you need to keep in mind:

Should I Have More Than One Will?

If your foreign assets are limited to a small bank account, one South African Will may be enough, as many banks recognise it for worldwide assets. But if you own substantial assets or own foreign property, separate Wills can help by aligning each with local laws, which may speed things up for beneficiaries.

Understanding Probate Abroad

Foreign assets often require a local probate process (similar to South Africa’s executorship). If this is needed, the South African estate can’t be finalised until it’s completed abroad, potentially causing delays. Having a foreign executor familiar with local probate rules can make the process smoother, especially if you have multiple or valuable assets overseas.

Additional Costs and Fees

You need to make provisions for additional costs as other countries don’t always cap executor fees like South Africa does (3.5% plus VAT). In some places, probate fees are much higher.

Forced Heirship, Marital Property Rules and trusts

Some countries, like Italy, Portugal, and France, have “forced heirship” laws that dictate how assets are distributed,  regardless of what your Will says. Additionally, marital property regimes may impact distribution, and testamentary trusts are not always recognised.

 Inheritance Taxes and Duties

Your foreign assets might be subject to foreign inheritance taxes on top of South African estate duties. These taxes can add up and reduce the total inheritance for beneficiaries.

Preventing Conflicts Between Wills

If you decide on multiple Wills, make sure each one applies only to assets in that specific country to avoid accidental revocation. This is why an experienced estate planner is invaluable—they ensure your intentions are honored without any legal conflicts across borders.

Working with a specialist familiar with international laws can help lower these taxes as well as foreign probate fees through strategic planning. If you would like a ‘Health Check’ carried out on your Will at no cost, contact us.

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