Estate planning now that you embraced and left South Africa

Many years back when mainly doctors and rugby players wished to immigrate to Australia, I had the opportunity to host, in Sandton the Australian friend of the court. Two siblings were fighting it out in court as the will lodged with the Master of the High Court in SA was ambiguous said one, and impossible to implement said the other. As the will was prepared in signed in Australia, the SA court accepted the Australian legal export on succession law, as a friend of the court.

The expert arrived in SA on Saturday but I only met him on Monday and true to our hospitable nature enquired about his well-being and his experiences so far. He was most annoyed as the pilot made a direct landing approach and did not circle around Table Mountain. On suggestion of his friend who often visits SA en route to Australia, the Mountain is best experience from the air. Being a gentlemen and a scholar I merely remarked how sorry I am as it is indeed a splendid sight. My brain was in over time, how could one fly around the Table Mountain en route to Australia? Where did the friend fly to or from? Anyway, I am not going to upset the visitor by sharing my thoughts on his geographic intelligence.

On our way to the advocate chambers for the pre-trial, he asked me if I have seen the robot referred to in the will. A robot?

I read about the pending patent on the bionic leg the deceased, a prostatitis hoped to design for amputee athletes preferring to walk or run on more than a thin Oscar Blade. In my best Australian English I asked if there was traffic signal on the deceased’s Karoo farm. No, I was told, the proto type is being built at the Innovation Hub in Pretoria. I silently blushed (yes it is possible, but it can easily go over into uncontrolled giggling) and realised when an Australian refers to a robot he refers to a bionic man or limb, not a traffic signal installed at the Fountains Circle!

Later my learned Australian friend of the court, as he became my friend asked me about my travels outside of our country. I only travelled in “SA” I said and he asked with great excitement which cities and did I travel inland as well. As I was about to remark that based on his geographic insight into the location of Table Mountain, he may not know all the cities I visited in SA, and it suddenly dawned on me: We are speaking past each other!

SA I realised, in his frame of reference is South Australia and I then asked about his friend visiting South Africa (I did not say SA this time); where did he come from and where did he land? Oh he has a son in Hawaii and flies from Australia to South Africa via Hawaii and a USA hub. I then explained to him that certain flights from the USA lands in Cape Town and much to his surprise, he was told that OR Tambo (as it now known) is not the only international airport in South Africa.

This is but one example of daily English being interpreted differently on different continents. This leads one to the question: What else should South African expats be aware of in drafting their new wills whilst residing in Australia, or New Zealand or the UK for that matter.

In this article I will try and highlight some issues faced by expats living outside South Africa.

Separate Wills

Expats is best advised to prepare a separate will dealing with South African assets only, specifically where there is immovable property held in South Africa.

Normally, only South African assets will be subject to estate duty yet in the case of South Africans treated as tax resident, yet residing abroad the sad news is that their wealth, where ever in the world it may be situated. Formal emigration is not required to break tax residency, however CGT on the emigration value of assets other than immovable assets, will have to be paid. Escaping future death duties on your Australian wealth could indeed involve paying CGT many years prior to your death.

Preparing a South African will could go a far way to separate your dutiable South African estate from your non-South African estate exempt from South African estate duty.

Having a South African will could protect your legatees against a long and cumbersome process to have the Master of the High Court  (in South Africa) accepting not only the certified copy of the Australian will but also the acceptance of the Australian executor

Do Not Rely On An Australian Will Appointing An Australian Executor

The Master may accept the Australian appointed executor without following normal procedures, on condition the deceased did not reside in South Africa and the estate does not include immovable South African properties. The foreign executor will, in all cases, be called upon to file a final income tax return and an estate duty tax return.

Where there is immovable South African in situ properties held by a deceased estate administered in terms of Australian law, the Master may as indicated above, appoint a foreign executor or proceed to appoint a local executor once a certified copy (by a competent public authority in the country or territory in which such will) of the foreign will is filed at his offices in Pretoria. Should the foreign will appointed executor be duly appointed in a foreign country, proof of his of his or her authenticated appointment must be forwarded to the South African Master of the High Court. Authenticated is not the same as the certified copy process and due to this cumbersome process, South African Expats (Saffas) are often advised to prepare a separate will dealing with South African Assets and in said will, appoint a local South African executor which can be a surviving spouse, a relative and or the agent or correspondent office of the duly appointed Australian Executor.

Differences in Capital Gains Tax And Estate Duty Rules

Australia does not levy estate duty or a death duty based on wealth transferred, as is the case in South Africa.

Excluding all assets not found in South Africa, from the ambit of the South African will and executor, could ensure that no Australian assets are mistakenly made subject to South Africa estate duty, merely because the is bequeathed to a South African resident relative.

South African assets exceeding the R3.5m dutiable sub-minimum could be bequeathed to a surviving spouse, saving the local estate several thousands in estate duty and capital gains tax on immovable properties

Can I Do Without a South African Will, Once All My Assets Were Extracted From South Africa?

The disputed will referred to in the introduction was an Australian instrument and became relevant as a predeceased grandfather bequeathed and expiring usufruct to a legatee nominated in the  last will and testament  of his Australian son and failing any valid will, the intestate legates of his son. Due to one son having died in Australia, without a local will or dutiable estate, and without any children, his share of the expiring usufruct may revert to the deceased’s siblings. The widow in Australia argues that although there was no estate registered in SA, the Australian will’s only nominated legatee (herself) should benefit from grandfather’s will. A court case ensued and the lesson learnt is that even if the one pager bequeathed the entire residue to the surviving spouse and children in equal share, an expensive court case may be avoided as the assets dealt with and or taxed within a deceased estate was not always assets  knowingly held and managed but the deceased. 

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How to keep your South African citizenship?

Planning to apply for a foreign passport, but want to retain your South African citizenship?

Don’t forget to apply for the retention of your South African citizenship first, or you’ll lose it, the South African High Commission in London has confirmed in response to recent queries from ”Saffers” in the United Kingdom.


An application for the retention of South African citizenship must be made before one acquires any foreign nationality. Persons under the age of 18 years do not need to apply for retention of their South African citizenship, as they will not lose their citizenship while still minors.

How do I apply?

You need to contact the consular section of the High Commission in your new home country to obtain the necessary forms.

The processing fee for this type of application varies from country to country, as a rule of thumb the cost in the United Kingdom is £25.00.

Turnaround time for applications also varies, usually it is 15 working days.

What happens if I became a foreign citizen without applying to retain my South African citizenship?

A person who has lost South African citizenship by virtue of failure to apply for the retention of South African citizenship will have the right to permanent residency in South Africa if he or she was born there. Such a person will be allowed to apply for the resumption or reinstatement of South African citizenship in South Africa. An application for resumption or reinstatement of South African citizenship is approved on condition that the applicant will live permanently in South African once his or her application has been approved.

IMPORTANT NOTE: Your South African Citizenship is not in any way affected by the process of formal emigration (financial exit) from South Africa.


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Why is it such a mission to “migrate my finances”?

Many ex-pats or Saffers living abroad have tried it on their own and bear the (emotional) scars of going through the experience…..it is the seemingly simple act of moving ones finances (assets & funds) “closer to home”. Don’t be fooled – just like golf, it seems simple until you try to hit that little white ball with that large club head for the first time! Soon you will be going round in circles and taking the road less traveled….

Here is a short course (excuse the pun) in “migration golf”…..

Lesson #1: The rules of the club
In golf, the club has many rules you have to abide to while navigating the course.
In financial migration, there are many stipulations, documents and regulations to navigate in order to successfully emigrate, cash out policies and/or move funds through foreign exchange controls.
We do not make the rules, but are merely knowledgeable players on the course, with paid up membership.

Lesson #2: The swing – the importance of getting it right from the start
Getting off to a good round of golf requires accuracy from the tee-box and completion of a good golf swing.
Accuracy and completeness from the “player” (i.e. you, our client) when completing and supplying documentation in the migration process is just as important for a successful round through the “migration course”. As in golf, any errors and deviations turns a possible fun outing into a nightmare round.

Lesson #3: It’s a time-consuming game
Golf is not a game for those in a rush. It could take quite a long time to complete a round, normally longer than initially anticipated. There are varying factors that could influence this, including the effort and focus you put into the game, your experience, the team members you choose and the toughness of the course you are playing.
The similarities to financial migration is staggering. Migrating your finances have many impacting factors and various situations could play a roll in extending the time it would take to complete a client’s case. These factors include the bank the client chooses to emigrate through, the insurer(s) of the client’s policies and the tax status of the client at the revenue services.

Lesson #4: It can be a complex game with many variations
Golf is golf, right? Well, no, not exactly. There are many formats and variations, not to mention the complexity of just the basic rules of the game. Some ‘Greek terms” for new players include scramble, best ball, modified stableford, and lone ranger.
Following the trend of the previous lessons, financial migration also follows the same route, with multiple complexities and many parties involved. Each organization involved in the process has its own set of stipulations, processes and documents to complete, e.g. SARS, insurers and banks. There is no “inter-operability” between these organizations, thus information has to be duplicated and provided in multiple formats. Inter-working within the same organization between different departments can also be an issue and causes errors and delays.

Lesson #5: There is a cost to playing, even though you have played before
You might have played golf before and you might even be a member of a club, but it still costs to play a round and costs differ depending on the course and sometimes the season or the timing. The experience of playing should far outweigh the cost though.
Similarly, you might have migrated officially before, but there are still costs involved in confirming such migration and obtaining the correct proof and documentation required to initiate migration of funds. Again here, depending on whom you play with, the experience and value delivered should also far outweigh the cost.

With all this said, arguably the most important consideration when embarking on a round of “migration golf” is choosing your playing partners wisely. Astute, friendly, helpful and considerate playing partners in this sometimes-unforgiving game are paramount!

So, come and join the ‘cashkows fourball’.



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What role does technology play in making global financial migration easier?

So the rules have changed. The government has now said yes, if you live permanently overseas and you have a Retirement Annuity in South Africa, you are legally entitled to withdraw those funds, before maturity and before retirement age. Great news isn’t it? But how on earth (or from 10 000 kilometres away) does one practically do that? Insurance forms, bank accounts, SARS, the South African Reserve Bank, tax clearance certificates, MP336, IT21A, blocked rand and asset accounts… it all sounds a little too complicated and bureaucratic to do, even if you were in South Africa, let alone from 1000’s of kilometres away!!

This is where the experience, the staff and the systems at cashkows.com come in – making the whole business of getting your RA paid out and transferred safely and efficiently to you seem quite effortless. We know what forms need to be completed. We know who to talk to at the numerous banks, the SARS offices and the insurance companies. We have learnt how to make completing and submitting the apparently endless and seemingly onerous documentation easy for our clients through our secure and robust online system and our world class couriers. We have the best financial, tax planning and FX team available to ensure that you get as much of your hard earned cash out as is humanly possible. We are also fully up-to-date and aware of the ever changing rules and regulations that govern transactions and processes of this nature and constantly improve our systems to accommodate new processes and simplify the requirements from the client’s perspective.

So what role does technology play in all this I hear you ask. The short of it is that it doesn’t really matter… as long as the best skills are dealing with your case at the right time through the right procedures and our technology and expertise are ensuring the most effective use of your valuable time then ASP.net, MSSQL, SSL, PDF pre-pop, Ajax and JavaScript should mean about as much to you as a Chinese dictionary to a 6 month old baby. (For the record, the above technologies do in fact enable easier global financial migration as they form the foundation of our IT system that has been developed to make the process easier for you).

Yours in technological excellence
The team at cashkows.com


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From the UK to South Africa

As the only “Pommie” in the team at cashkows.com I thought it may be interesting to share just a few of my experiences having done the exact opposite to many of our customers and moved to South Africa from the UK!

Firstly I should say that the term “Pommie” isn’t completely accurate. I am actually from the Isle of Man and whilst the Island is within the UK, I am in fact a “Manxman”....something I am proud of.

I moved to South Africa in October 2008 after losing my job in offshore banking – a result of the global financial meltdown. What a blessing that proved to be!


The reason we chose the small town of Hermanus in the Western Cape is because my wife is South African and we’d spent many fantastic holidays here over the previous eight years.
Having made the decision to “emigrate” we put the wheels in motion to prepare for the physical move………I’ll spare you the details, suffice to say I have considerably more grey hairs post the move than I did before!

Although we have close family in South Africa I do recall feeling like a fish out of water when we stepped off the plane and the cold realisation hit me: this time it isn’t a holiday, I have to make a living to support my wife and our two daughters.

Anyhow we settled in very well and started to make our way quite nicely. Things improved still further when a chance meeting led to me joining the fold at cashkows.com.

That’s a very brief synopsis of how we got here……now for some of the more humorous highlights during our time in South Africa….thus far!

Home Affairs was one of my first ports of call after arriving and what an interesting “challenge” it proved to be. I hadn’t previously come across the concept of queuing to join a queue in order to get a form to join another queue to make an appointment to see the right person. However heeding the advice of some seasoned “professional queuers” I learned quickly and from my second visit onwards I always pitched up with a packed lunch!

After several “visits” I finally made it to the point at which I sat across the desk from the top dog who would make the decision about issuing me with an ID book or not and quickly got on his wrong side after passing comment about the queues. Feeling as if I was on the back foot at this stage I remember rapidly looked around the office for some means of rescuing the situation and noticed his poster of Manchester United Football Club….bingo! A quick word about my “mate” David Beckham and the deal was done!

Driving in South Africa is very different! In the UK insurance, a licence, road tax, lights, a steering wheel and a windscreen are unfortunately not optional. That said speeding in South Africa is quite a lot cheaper than it is in the UK and it seems you can “undertake” here, on the hard shoulder. I am pretty certain however that reversing on a motorway is not allowed in the UK and sadly we only have one fast lane.

I am impressed with taxi drivers’ efforts to reduce their carbon footprint by keeping the number of vehicles on the road to a minimum………..on a recent drive to Cape Town I was overtaken by a taxi and noticed all the passengers on one side with their arms out the windows carrying a gate as long as the vehicle, thereby avoiding the need for a separate delivery van…..brilliant!

The Braai is clearly a national treasure and possibly my favourite part of South African social culture. I find it amazing that a braai is planned weeks in advance. In the UK a “barbeque” is usually thrown together with just a few minutes notice, as soon as a weather window opens and it is usually over just as quick when the rain puts the fire out! I recall clearly my very first braai in South Africa at which my now father in law explained to me that a “skilpaadjie” was a small tortoise. After a lengthy conversation about how to remove a tortoise from its shell six of them went on the coals and I prepared myself to eat a household pet, being keen not to offend. A great laugh was had at my expense and they never cease to remind me when “tortoises” are on the menu!

Afrikaans is still a challenge but I am doing my best to learn and keep pace with the progress of my eight year old daughter. I do now understand more than half of most conversations (I think!) unless it is late in the evening around the braai and those around me have been “lubricated” by brandy and coke! When it comes to pronunciation I really do struggle, as evidenced by my efforts on 24th December last when I wished the rest of the office “a happy cheese festival”.

South Africa is very different to what we are used to as a family and it comes with plenty of reasons to love it and some not to love it quite so much but at the end of the day for us right now it is home and we choose to embrace and enjoy everything good it has to offer.
When asked what is so special I pause for a second and recall the words a local shared with me shortly after we arrived………… ”AFRICA HAS LIFE”

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Die vlug na Sydney

Ja, die kinders het gevlug… party vir die politiek, party vir die misdaad en party net van die besige lewe… Jy kan nie jou lewenstyl verander waar jy is nie, nee, te veel verwagtinge, te veel sekuriteit, te veel gemak… nee, as jy wil verander aan jou lewenstyl moet jy jouself regmaak vir ‘n “total make-over”. Hello Sydney! My nuwe begin, my nuwe lewe!

Maar hierdie gaan nie oor die vlugtelinge nie, nee, hierdie is vlug SA7700 (operated by Quantas) Dit is ongelooflik om net te sit en kyk na almal op hierdie vlug. Ons vlieg natuurlik ekonomiese klas, Jy herken die karrakters… die ouens met die “JEEP” hemde is die “khaki brigade” van 10 jaar gelede… stoere boere.. sing Nkosi in Afrikaans….

Dan is daar die lot op LSD.. nee, nie op wit poeier of pille nie… Look, See, Decide. Jip, hulle is die lot wat giggel oor alles… wat “The Australian” lees … en met almal op die vlug gesels, soek redes hoekom AUZ en redes hoekom nie meer uit die “Blou van onse berge” nie…
Ek geniet die “babyboomers” die meeste. As hulle kinders nie na Sydney “gevlug” het nie, sou hulle sekerlik nooit op enige ander plek vakansie gaan hou het as Badplaas of Chipees nie… Ook hulle is in twee kategoriee… Die op hulle eerste vlug na die verre vreemde… hulle geld is stewig om hulle middel in “a money belt”, doen al die oefeninge soos voorgeskryf om swelling te voorkom en hulle nuwe “gemaklike” klere pas nie by hulle onseker gesigte nie… Dan is daar die “frequent flyers” – die oueres van dae wat vir ‘n tweede of derde keer vir die kinders gaan kuier… deel graag raad uit, vol self versekering en ondersteuning, maar vol verwagting om die kinders en kleinkinders weer te sien.. oupa en ouma kom kuier!

Die tranerige families of die rooi dikgehuilde oe is die nuwe emmigrante, vir die eerste keer op pad na die vreemde, en moes nou net finaal van die familie en vriende afskeid neem. Emmigrasie is nie maklik nie, ten spyte van die nuwe avontuur wat voorle moet jy die emmosionele bagasie van die afskeid met jou saamdra.

Daar is net een swart person op die vlug, en hy sit langs my… Ek kan my nuuskierigheid nie meer inhou nie en vra waar kom hy vandaan… Zimbabwe! ( Die buurland wat meeste van die Suid Afrikaanse emmigrante se grootste rede vir emmigrasie is) Ek assosieer hom sommer met sy president en kry so ‘n warm gevoel onder die kraag. “ Nou waarom vlieg jy Sydney toe” wil ek verder weet… “I’m attending a Deliverance conference, we’re trying to raise money for orphaniges in Zimbabwe” is die skugter antwoord. Sy laptop lyk of hy saam met die man deur die burgeroorlog is. Sy voorlegging begin speel… ek het ‘n knop in my keel…. Kinders bly kinders… honger bly honger. Ek kyk na die gesiggies en besef dat hulle het nerens om heen te vlug nie, daar is nie vir hulle ‘n vlug na Sydney toe om ‘n beter lewe te gaan probeer skep nie, hulle probeer net vandag oorleef.

Ek sit terug, sluit my oë en dank my hemelse Vader vir sy genade vir my… dis al wat ek het…GENADE

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'n Boer maak 'n plan

A while ago, while holidaying in Hermanus, I asked an old school friend who now lives in London ... "How come so many South Africans who've left the country end up successful, having moved to a strange country". He put down the Castle which he was drinking from the bottle and replied "Easy ... 'n boer maak 'n plan"

I just loved hearing the expression and reminded myself - you can take the boy out of South Africa, but you can never take South Africa out of the boy! The real reason for success however lies in the fact we're an honest, proud and hardworking nation - and a curious bunch.

People don't leave here thinking the grass is greener on the other side, for there are few countries in the world offering a greener life than sunny South Africa. Irrespective of the reason for leaving they know there are both challenges and adventures out there! They also know there are many opportunities, ready for the picking. All one has to do is to bend down to pick them up!

And therein lies South Africans' success - we'll do whatever it takes get to the top. It's in our genes to be innovative and forward thinking. Real go-getters, great at successfully reinventing ourselves, making our nation proud and adding value to the lives of others.

The one invention we're all passionate about? We're constantly practicing, perfecting and enjoying the art of braaing ...

My friend loaded the boerie on the braai, opened another Castle, put his bare feet up while calling out to his son "How many cray's you guys pulled today Boetie?". Looked at me he said "You know what? We're really privileged - we live the best of both worlds"

I thought to myself once a South African ...

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