|
Last week Silke Financial Services hosted an interesting seminar on Offshore Investment and Trusts. Some very important aspects about offshore investments were raised and are worthwhile repeating.
- Residents over the age of 18 may make use of an annual R500 000 travel allowance per year. For children the allowance is R160 000 per child. Note that this travel allowance may only be used for travel purposes, gifts, donations to missionaries and maintenance. Self evidently this allowance can be used only for these purposes and will no doubt be 'prudentially' scrutinised by the Financial Surveillance Department of the Reserve Bank for signs of abuse. Do not attempt to leave any of your unspent travel allowance overseas.
- If you have money abroad make sure that you have a foreign Will dealing with those assets. Also make sure that your South African Will dovetails with your foreign Will. In this regard you will need expert advice.
- When investing offshore find out if there will be offshore probate in the event of death. Offshore probate must be avoided at all costs as it requires that your offshore assets be wound up as a separate estate. This adds to delays and costs in winding up your South African estate. Silke Financial Services advises its clients to invest only in investment companies where no offshore probate is necessary.
- One must be careful about having investments in joint names offshore as it is frowned upon by the Reserve Bank. The reasoning is that the Main Holder of, say a bank account, is making funds available to another person or other family members without Reserve Bank approval.
- Specific legal and tax rules apply to Offshore trusts and expert advice is needed when donating, granting loans or the disbursement of money from a foreign trust.
Silke Financial Services has access to the best skills in advising clients on offshore investments, wills and trusts. |
