March 01, 2024
Inheritance of an offshore asset
When it comes to claiming a foreign inheritance bequeathed to you abroad from a South African estate, irrespective of whether you are living in South Africa or not, there are some important facts you should be aware of.
During the 2022 Budget Review, the Minister of Finance announced some changes to the Exchange Control Rulings. One of which relates to the retention of foreign gifts and other authorised foreign assets abroad.
Resident individuals may now retain foreign assets inherited from a South African estate, where the finalisation date of the Liquidation and Distribution Account is on or after 22 February 2022.
These assets or funds may now be transferred to an offshore account in your name without you being obligated to declare the funds to the South African Reserve Bank (SARB) or repatriate the funds back to South Africa.
However, should the finalisation date of the Liquidation and Distribution Account be before 22 February 2022, the previous ruling still applies in order to retain the asset or funds abroad.
Here is what you can do to keep such assets abroad without repatriating them to South Africa, if the date of the finalisation of the Liquidation and Distribution Account is before 22 February 2022:
Submit an application to the SARB:
Approval from the Reserve Bank is required to keep the assets abroad.
Currency Partners can assist with an application which must be submitted to the SARB and accompanied by the following information together with the relevant supporting documentation:
- Full name and surname of the Deceased
- ID number of the Deceased, supported by a copy of the identity document
- Date of death, supported by a copy of the death certificate
- Full details of when the Deceased acquired the assets
- Current value of the assets, supported by a valuation statement
- Name and surname of the Beneficiary submitting the application
- ID number of the Beneficiary, supported by a copy of the identity document
- Full details and amount of the proposed investment
Supporting documentation requirements:
- Final Liquidation and Distribution Account (approved by the Master of the High Court)
- Last Will and Testament
- Letter of Executorship/Authority from the Executor of the Estate
- Copy of Executor’s Identity Document
The application must also be signed by the Executor, as well as the Beneficiary; and must include the following references:
- The foreign assets will not be placed at the disposal of any third party South African resident, without the prior approval from the Financial Surveillance Department of the South African Reserve Bank.
- A request for exemption from Regulations 6 and 7 of the Excon Regulations, which state that, as a general rule, a person who becomes entitled to an amount of foreign currency or a foreign asset, must declare that foreign currency or foreign asset to an Authorised Dealer within 30 days of becoming entitled thereto.
- The foreign assets will be declared to the South African Revenue Service (SARS).
Currency Partners is proud that some of the biggest names in Financial Services and Property have chosen us as their preferred specialist provider of foreign exchange services for their clients and can handle such applications, along with any related exchange control matters, as a complimentary benefit of our foreign exchange services.
Furthermore, by giving you access to the best pricing and service available in the market, we add value to your individual requirements and make your money go further. Keeping an eye on the markets, so you don’t have to, we make sure that you never miss out on a favourable exchange rate. And with our ‘better price promise’ you can always be assured of saving with Currency Partners.