Beware of international estate duties when investing offshore

Fin24 – Dec 29 2016

Cape Town – More than ever, South Africans are looking into investing offshore – with protection from the weakening Rand and the need for some buffering against an increasingly unstable economic climate being among the major drawcards.

Investing overseas also offers access to investment options and structures that are not available on the domestic market.

However, investing offshore is not without risks and the local investor should avail himself of all the facts before making a decision, cautions Coreen van der Merwe, Managing Director of Sovereign Trust (SA).

For example, South African investors with offshore assets could find themselves liable for unexpected estate duties in the event that their portfolios are not correctly structured.

“When considering an offshore portfolio, it’s crucial to work with a trusted, reputable financial adviser. A good adviser will draw up – and discuss – a long-term investment strategy, explain the pros and cons of the suggested investment structures and how the investment will be made, and also thoroughly investigate the institution that will receive the investment, before making recommendations,” says Van der Merwe.

Read full article here.

Share this story

Follow us

Sovereign Trust (Gibraltar) Limited
Tel: +350 200 76173