Overview

Wealth should not be trapped in one jurisdiction. HNWI in ZAR or USD, or should it be a weighted basket of currencies?

As Gary Player always said, there are four pillars of investment. Should we not say wealth should be spread over multiple jurisdictions?

Risk vs. reward, or should one include calculated risk silo's in the wealth preservation game? Can one afford to ignore crypto, digital assets, and wallets, or should one err on the side of conservatism? Keep the known, tried, and tested?

Should conscience and morality play a distinct role in wealth and succession planning?

What is the role of tax? Is it a consequence, or is tax efficiency the leading factor in decision-making?

To trust or not to trust? Using a trust or foundation, or neither? What is the best vehicle to use to ensure a peaceful and cash-flush succession plan, taking into account that it appears as if most tax jurisdictions are attacking trusts? Or was this just a perception while the OECD and world morality bullied smoke and mirror structures (read trust structures) into compliance and transparency?

And finally, for South African HNWI : the dreaded phrase: Excon restrictions?

Webinar Content

Succession planning // intergenerational transition // International efficiency

1. A heightened sense of purpose and legacy. Do we hand over wealth creation or only the management of the cash-generating businesses? To the family or the outsiders

• Identify key stakeholders: not only family but also employees and management of family business
• The 4th and 5th generation need not be wealth consumers; they can and wish to add to the family wealth
• The founders need to hand over control and management, be it to a management team or multiple next-generational family teams, knowing that their financial and other needs in old age will be taken care of.

2. Stay abreast of tax reform, Excon and global transparency rules

• HNWI often wish to share their wealth, i.e., it is not about gathering and piling up; it may be more rewarding to share (i) wealth; (ii) opportunities; or (iii) to share only income, protecting the corpus of the trust or family wealth long before the opportunity arises to pass wealth onto a next generation.

3. Navigating the Diaspora, tax residency, digital nomadism, overall mobility and sibling rivalry

• Family constitution
• Risk: cyberattacks, family scandals, brand name protection, human trafficking and hostage risk; multiple spouses and several core families of various ages

4. Global expansion: opportunity or challenge

5. Appropriate business structures vs. tax efficiency, or should it be best tax efficiency within an appropriate structure?

6. Risk vs. reward: does this remain a valid test in the modern investment era?

Competencies developed in this webinar

1. Understand the issues facing an advisor, the tax accountant, and the family office administrator of a HNWI or business/wealthy family.

• Advisors need to understand the life phase of the HNWI (as an individual) and as part of a wealthy or business family
• Wealth creation or wealth protection phase? The individual could be in creation phase, but the family may be in a mature, stable stage where wealth creation and fair distribution of wealth are the key factors. How to manage the conflict?

2. From a SA perspective, obtain a more global perspective on tax issues, disclosure rules and the opportunities that await us

3. See the diaspora family in context; South African rules may deal with the source of the wealth rules, yet SA rules and tax regime no longer dictate the game plan.

4. Appreciate why HNWI can't rely on one advisory team only. Advising the HNWI, or business family, to ensure growth and a smooth transition to the next generation

Presenters

Hugo van Zyl

CA(SA) TEP MTP(SA), Cross-Border and Tax Specialist

Hugo is an experienced trainer, lecturer and "go-to" industry specialist. It comes as no surprise that SARS appointed him to lecture on capital gains tax and worldwide taxation based on residency. In the last six years, he has presented at least once a quarter, for anyone of the many professional bodies he belongs to.

Hugo is internationally known as @Wegkaner (on Twitter), taking special care of South Africans residing outside South Africa, or planning to relocate out of South Africa.

Based in Cape Town, he is proudly South African yet holds a United Emirates Residency permit, because of his UAE registered practice aimed at expats. Hugo's client base is global, includes intermediary firms, local and international financial institutions and often the powers to be at the professional regulatory bodies he belongs to.

Hugo was one of the first advisers able to assist South Africans living abroad, to emigrate and extract their retirement funds from South Africa formally, initially trading as FFI, after that TAXFORUM once upon a time being part of the emigration teams at Maitland, Cashkows (now FinGlobal) in Hermanus, Breytenbach Cross-Border Advisors (Cape Town) and more lately FNB's Fiduciary unit. The First Rand Bank stint was short yet a most exciting journey.

Hugo serves on the SAICA Tax Committees sub-committee dealing with SARB FinSurv (or Exchange Control) matters.

During 2018, providing advisory services using e-meetings and platforms were questioned. Yet, today in the Covid-19 era, Hugo's business model using online platforms became the norm. It is therefore not surprising that most his clients live outside South Africa and his in-depth understanding of the various double tax agreements, often leaves his foreign-based colleagues astounded. In South Africa, his local company provides much needed support and guidance to other small and medium-sized firms.

Mathys Briers-Louw

Mathys is an skillful attorney with both local and international legal academic knowledge. He was admitted as an attorney in 2014, marking the beginning of his successful career in the legal field. His expertise covers cross-border legal matters, exchange control, international money transfers and fiduciary services. Mathys provides top-notch legal services to individuals and businesses navigating the challenges of cross-border transactions.

Membership:

• Fiduciary Institute of SA (FISA)

Education:

• BComm Law (Stellenbosch)
• LLB (Stellenbosch)
• LLM in Transnational Business Practice (Pacific, McGeorge, USA)

CPD

Attending this webinar and the successful completion of the online assessment will secure a certificate of completion for 2 hours of Tax CPD.

Event Investment

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SAIT member special discounted rate: R368.00

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