Why It’s Crucial to Create a Will When Moving to South Africa

Relocating to a new country brings excitement and new opportunities, but it also requires careful planning, especially when it comes to safeguarding your family’s future. One of the most important steps you can take is creating a Will, particularly when moving to South Africa.

Here’s why:

1. Protect Your Children

If you have children, appointing a guardian in your Will is absolutely essential. This becomes even more critical if your chosen guardians live outside of South Africa. In this case, it's important to designate a local guardian to care for your children while arrangements are made. This person could be your the executor of your Will, a family member, or a trusted friend. Ideally, this should be a South African resident to ensure they can step in immediately if necessary.

Without a clear guardian in South Africa, your children could be placed into foster care or under the supervision of the state until a more permanent solution is arranged. This could be emotionally distressing for your children and challenging for guardians trying to navigate a bureaucratic government system upon their arrival.

Additionally, under South African law, assets left to children must either be placed in a trust or be managed by the guardian on their behalf. If this step is not taken, any inheritance left to minors will be administered by the Master of the High Court until they turn 18, which can cause delays and prevent your family from benefiting from the funds in the interim. A proper Will ensures that your children’s inheritance is handled as you intended, avoiding complications and protecting their financial future.

2. Planning for Assets in South Africa

If you acquire assets in South Africa, such as a home, bank accounts, or business interests, it’s important to handle them through a separate South African Will. Estates are managed by the Master of the High Court, which is often inefficient. Combining your South African and global assets in one Will can create delays and administrative challenges.

To avoid these issues, you should appoint a South African executor for your South African Will. This allows for smoother management of your local assets and ensures they are distributed according to your wishes.

3. Tax Considerations

South Africa imposes estate duty on assets within the country, with a rate of 20% on the value of estates up to R30 million, and 25% on anything above that. However, if you maintain tax obligations in another country, like the UK or the US, it’s important to determine where your estate will be taxed and avoid potential double taxation.

For instance, the UK retains the right to impose inheritance tax on the worldwide assets of individuals domiciled there, regardless of tax residency status.

Seeking professional advice can help you navigate the complexities of international tax laws and avoid unnecessary taxes.

By creating a South African Will and taking steps to plan your estate, you ensure that your assets are handled efficiently and your loved ones are protected. It’s a crucial part of settling into your new life in South Africa and securing your family’s future.

For further information contact Cape Relocators and we'll set up an appointment to guide you through the process of drafting your Will and estate planning to ensuring peace of mind.

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