What Are Some Ways to Get Funds Out of an Estate Into Company?

[Allenk]

Hi

We're doing some estate planning and are trying to work out an efficient way to get funds out of an individuals name into a company (with different shareholders).

The company will hold property.

What are some of the best ways to get funds out of an estate and into the company where the person isn't a shareholder? The person is 70, so there's still some time, but I'd prefer to start planning now.

It's for South Africa, but global principles should apply.

If needed we have a US LLC and a UK company as well, we could use, but not sure if this would help?

 

[Martin Everson]

It's for South Africa, but global principles should apply.

No such thing as global principles when it comes to estate planning. For example in UK there is 7 year look back after assets are gifted [to keep it simple]. There are also thresholds etc that would be ZA specific. You also need to consider Capital Gains Tax as transfer or disposal of property to another entity may trigger a capital gains event. There is a myriad of factors one needs to consider that are all country and situation specific.

You need to speak to a South Africa specific estate planner.

 

[Allenk]

No such thing as global principles when it comes to estate planning. For example in UK there is 7 year look back after assets are gifted [to keep it simple]. There are also thresholds etc that would be ZA specific. You also need to consider Capital Gains Tax as transfer or disposal of property to another entity may trigger a capital gains event. There is a myriad of factors one needs to consider that are all country and situation specific.

You need to speak to a South Africa specific estate planner.

Hi Martin. Thanks. We have a small annual donations allowance, but don't have the 7 year look back like in the UK.

I'm not worried about the CGT disposal, the goal is how do you get funds out of the estate into the company or an offshore company.

Just some rough ideas I can explore further...