If you have assets beyond the borders of South Africa (SA), it is advisable for you to have another will prepared in the country of relevance (jurisdiction). Laws of succession differ from country to country and a will should be drawn up in accordance with the relevant country’s laws.
Assets outside SA’s borders are not part of an SA * deceased estate account. From an estate duty perspective, the assets are deemed assets in most cases and a variety of tax exemptions may apply.
* Liquidation and Distribution, which are set by the estate executor in SA
We find that SA pension funds require an SA death certificate for death claims. These funds do not accept a foreign death certificate. Deaths need to be reported in SA in order for pension funds proceeds to be paid out to beneficiaries. It is also important to ensure that the deceased’s marital status at the Department of Home Affairs is up to date, especially with regards to divorced spouses.
Green SA Identity Booklet and new SA Identity Cards:
SA pension funds and other investment funds require the original green identity document stamped “DECEASED / OORLEDE” as further proof. However, the state organisation’s system has not yet been updated to incorporate the new SA identity cards. Therefore keep your old identity book safe when you receive a new ID card. Investment companies in SA require an SA bank account to pay SA living annuity funds proceeds to beneficiaries.
Quick completion of SA deceased estates and death claims:
An estate’s tax affairs is one of the main reasons why a deceased estate takes quote a long time to be completed. In addition to personal information, correspondence and documentation, the tax assessment of the deceased include the following:
– Income Tax
– Capital Gains Tax (CGT), and
– Value Added Tax (VAT)
Additional documents and information that are needed to register and administer a deceased estate are listed below.
We find that heirs sometimes want to give part of their inheritance to their children. Take into account the effect of capital gains tax and donations tax. It is advisable for such an heir to discuss the intentions beforehand with his or her financial planner.
Information required for reporting documents:
- Deceased ID number
- Copy of Death Certificate
- Deceased place of ordinary residence
- Marriage certificate
- Place where married
- Place of birth
- Income Tax reference number
- Copy of last will and testament
- Parents of the deceased:’ names and surnames and whether they are deceased or alive
- Children of the deceased: names and surnames and whether they are major or minor
- Divorce order and settlement agreement if applicable
Document and information required:
- Original ID book
- Original Death Certificate
- All SARS documents with the income Tax reference number on it
- Last Tax Return submitted
- All Bank statements
- All shares certificates
- Loans/ Bonds
- Loans made to other (Trusts / Businesses / Person)
- Clothing -, Telephone -, Internet Accounts
- All other account opened in deceased’s name
- Registration documents of vehicles in name of the deceased
- All property deeds / agreements in the name of the deceased (immovable)
- Contact details (telephone number, e-mail address, physical address)
- Proof of residence
- Proof of banking details
- Copy of ID
Blog by Regina Viljoen