International Estate Planning
Presenters : Hugo van Zyl , Mathys Briers-Louw , Stefan Le Roux
Overview
Navigating the complexities of wealth and family across borders requires a sophisticated approach beyond a simple local will. As the world becomes more global, your assets and tax obligations rarely stay in one place, yet the law remains strictly local. This video explores the critical intersection of personal wealth and geopolitical regulation—the field of International Estate Planning. It reviews historical planning strategies, the impact of modern transparency and anti-avoidance legislation (like Section 7C and CRS), and the essential steps to future-proof a globally diversified estate. You will learn why "the classic playbook" is outdated and how to structure a plan that accounts for conflicting jurisdictional rules, dual tax obligations, and diverse family needs.
Video Content
- The Global Life, The Local Law: Understanding the fundamental conflict between borderless assets and localized succession/tax laws.
- South African Estate Duty (ED) and Residency: Detailed review of when ED is payable (ordinarily resident or RSA assets) and the 'Ordinarily Resident' test as defined by case law and Interpretation Note 3.
- The Evolution of Planning:
- 2005–2015: The Classic Playbook – Trusts, externalization via exchange control allowances, and the use of dual wills.
- 2016–2020: Tightening and Transparency – The impact of Section 7C on interest-free loans to trusts, the CRS/FATCA era for offshore disclosure, and the effect of the EU Succession Regulation.
- 2021–2025: Modernization – New opportunities with loop structures and increased SARS vigilance on CFCs.
- The Case for Multiple Wills: Why one will is insufficient due to conflicting rules on domicile, habitual residence, and the risk of inadvertent revocation.
- Key Planning Pillars:
- Conflict of Laws: Applying lex situs (immovables) vs. lex domicilii (movables).
- Forced Heirship in civil law jurisdictions.
- Aligning matrimonial property regimes across borders.
- Using Double Tax Agreements (DTAs) for relief against double tax.
- Best practice: drafting separate wills and clearly defining scope/revocation.
Competencies Developed
Viewers will be able to:
- Identify clients who require international estate planning by recognizing cross-border assets, family ties, and tax obligations.
- Apply the South African 'Ordinarily Resident' test for estate duty purposes and understand the scope of domestic and foreign assets.
- Evaluate the historical and modern efficacy of estate planning structures, including the current tax implications of SA trusts (Section 7C) and offshore companies (CFC vigilance).
- Determine the necessity of multiple wills and advise on the risk of conflicting clauses or unintended revocation across jurisdictions.
- Recognize the critical impact of matrimonial property regimes, forced heirship, and connecting factors like habitual residence in international succession planning.
Related Webinars
2020 Webinar Offshore Tax Planning Options For A Sa Tax Resident Webinar 3
2020 Practical Q&A With Prof Jackie Arendse - Essentials Of International Tax (Session 5)