Most people know that without a Will there’s no guarantee that your intended heirs will actually inherit your assets. Dying without a Will also gives you no control over the administration of the estate, or what happens to the funds if one of your beneficiaries is a minor.
What might come as news to you, however, is that anyone who has assets in multiple jurisdictions should really have more than one Will. If this applies to you, please do read on. This newsletter could save your heirs a lot of time, money and heartache…
Why do South Africans own offshore assets?
It’s not uncommon for South Africans to own assets in more than five countries! You may have:
- Purchased offshore assets using their offshore allowance to diversity their investment portfolio
- Inherited from family living overseas
- Purchased assets while living overseas
Why isn’t one professionally drafted Will enough to cover multiple jurisdictions?
There are two reasons why your South African Will may not suffice, the first being that your Executor won’t be allowed to administer offshore assets. He or she will need to appoint an agent in each of the countries in which you own assets. The agents will need certified copies of your Will and other documentation from the Master of The High Court, which can take months to obtain.
The other reason is that some countries have forced heirship rules which prescribe how your estate must be administered. In Ireland, for example, a surviving spouse is automatically entitled to at least a one-third share of the deceased’s estate. And in Mauritius, children are entitled to reserved portions of deceased estates.
It’s generally a good idea to have one Will per country in which you own assets, and it’s vital that the various Wills work together rather than contradicting one another.
Can my spouse (or significant other) and I draw up one Will?
In South Africa, couples can draft joint Wills regardless of their marital contract, which may be in or out of community of property, with or without the accrual system. The problem with joint Wills is that they too can cause delays in the administration of your estate. This is because, after the death of the first spouse, the original Will is lodged with the Master. When the second spouse dies (assuming they haven’t drafted a later will of their own – always a good idea), the executor has to apply to the Master for a court-certified copy of the Will.
The long and the short
In South Africa, we have the privilege of freedom of testation, which means we can dictate how our assets will be distributed on our passing. To ensure this privilege, it’s a good idea to have one Will for each of the countries where you own assets.
If you have any concerns about your family’s estate planning please contact us for advice and/or recommendations. Ensuring your lasting prosperity is our priority.