Many South African citizens hold offshore savings without a clear understanding of the tax implications or the access to these investments after death.
Offshore savings form an important part of a diversified portfolio but it is important to ensure that your offshore savings are structured correctly so that you do not overpay in tax and estate duties upon your passing. Equally important is that your investments are easily accessible to your beneficiaries.
The most efficient solution is to ‘wrap’ your assets in a vehicle such as an offshore wrapper. This protects the assets from requiring winding up by a foreign executor and provides immediate access to your beneficiaries upon your death.