Offshore Investment Warning

Joint Offshore Accounts

A cause for concern for offshore investors is where offshore investments are held in joint names. The South African Reserve Bank frowns upon such practices on the basis that a South African resident is making funds available to other persons who do not have approval to invest offshore. We recommend that you check on your offshore investments in order to ensure that no breaches of Exchange Control are being committed.

Offshore Probate

In previous Communiqués we have highlighted the importance of checking whether your offshore investments held in foreign countries could be subject to offshore probate on death.

Offshore Probate relates to having foreign investments wound up separately from a South African estate on death. This results in a costly procedure, in that specific legal requirements exist in various foreign jurisdictions. This undoubtedly adds to delays and costs in winding up a South African deceased estate.

When winding up an Estate of a South African Resident who has held an offshore investment, an attorney in that foreign jurisdiction must be appointed as an Agent of the South African Executor. The foreign attorney must then obtain probate in that jurisdiction’s courts. The investment can only then be realised, or transferred to the heirs.

The fact that a foreign investment fund is registered with the Financial Services Board does not mean that offshore probate will not apply. In fact, most FSB approved funds require offshore probate on the death of the investor.

The only case where offshore investments will not be subject to offshore probate is where the investment is made via a South African entity that has permission to investment offshore, acting as a nominee with permission to hold foreign assets.

Having offshore investments which require offshore probate will cost your estate unnecessary expense and prejudice your heirs.

We urge you to consult with Silke Financial Services in order to ensure that your offshore investments are not subject to offshore probate and at the same comply with Reserve Bank Regulations.

Silke Financial Services has the skill and expertise to advise on local and offshore trusts and works with professional experts in this field in order to assist you to tie up all loose ends regarding your estate planning and trust requirements.

All of us at Silke Financial Services wish our clients peace and happiness during this Passover and Easter period.

You are welcome to contact Ross Munro and Associates. We have partnered with Ross and his team specifically to extend our service offering to you. Ross and his well qualified team offer accounting, personal and corporate tax services.

Office Number: 021 674-4012
Email: ross@rossmunro.co.za
www.rossmunro.co.za
Fax: 086 669-1121