Page 42 - Profmark_Estate_Planning_Guide_2025

properties (also located outside South Africa and purchased from the
returns on the sale of the property).
Non-residents
n Immovable property and movable property situated outside of South Africa,
and which belong to a non-resident, are not subject to estate duty in South
Africa.
n The estate of a non-resident pays estate duty on properties located in South
Africa (subject to double tax treaty relief).
n When determining estate duty liability, it is important to establish:
u the residence of a person
u The location of the asset(s)
n A non-resident is free to donate the whole or part of his South African estate
without any liability for donations tax.
This is a complex area and it is advisable to seek professional advice when
considering the impact of investing offshore on the estate plan.

BUSINESS SUCCESSION PLANNING

n Any good estate planning exercise must involve succession planning of an
estate planner’s business, where applicable.
n The estate planner needs to make plans for who will succeed him, who may
purchase his shares on his death, whether the business should be sold, or
who will have the rights to income generated by the business.
Partnerships /shareholders /members
n In the case of a partnership, it is automatically dissolved when one partner
dies. All the surviving partner(s) can do is wind up the affairs of the
partnership.
n In the case of shareholders in a company – do the remaining shareholders
have first right of refusal to purchase the shareholding of a deceased
shareholder? Will the heirs sell the inherited shares in the business?
n In many cases, the shareholder’s agreement (or partnership agreement /
association agreement) will include a clause about the future ownership of
the business.
40