The principle of situs
The general rule is that the law of the country where an asset is situated (its situs) governs how that asset passes on death.
Immovable property in the United Kingdom, a brokerage account in Jersey, and a share portfolio in the United States are each, in principle, governed by the laws of their own jurisdictions.
South African resident estates remain liable for South African estate duty on worldwide assets, with credits available under double-tax agreements where applicable.
When a separate offshore will is worth it
If you hold material offshore assets, a separate will dealing only with those assets - drafted in the relevant jurisdiction - usually speeds up the offshore estate process by months and can avoid the need to apostille and re-seal the South African Letters of Executorship.
The South African will should be drafted to dispose of South African assets only, and the offshore will should mirror this - neither should accidentally revoke the other.
Common offshore traps
United States situs assets above $60,000 (such as US-listed shares held directly) attract US estate tax of up to 40% on death, with limited treaty relief for non-resident aliens.
United Kingdom inheritance tax can apply to UK situs assets above the nil-rate band of £325,000 even if the deceased was non-domiciled.
Forced heirship rules in some European jurisdictions can override the will and require fixed shares for spouses and children.
Joint accounts in some jurisdictions pass automatically to the survivor by survivorship and never form part of the estate - useful for liquidity, but the planning needs to be deliberate.
Documenting offshore holdings
Keep a clear, current record of every offshore institution, the account or policy reference, the relationship manager's contact details, and where the original ownership documents are held.
Make sure SARB approval and the relevant tax declarations are documented - your executor will be asked for these by the foreign institutions.
Common questions
Should I have a separate will for my offshore assets?
If you hold material assets in another jurisdiction, a separate offshore will drafted under that jurisdiction's law usually speeds up the foreign estate process and avoids the need to re-seal South African Letters of Executorship abroad.
Are offshore assets subject to South African estate duty?
Yes, the worldwide assets of a South African resident are subject to South African estate duty. Credits for foreign estate or inheritance tax may be available under double-tax agreements.
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