You are probably already wondering what case will now be made for insurance. However, this won’t be your regular discussion regarding insurance pertaining to SA exclusively, but rather what the benefits are of having offshore insurance in place. I won’t keep you guessing any further if this article will be of value to you, I have summarised a few important discussion points.
The solution to overcoming your estate duty problem can be to take out offshore insurance where it will pay out to an offshore trust. If you don’t have an offshore trust already set up, you can use a so-called bottom drawer trust to have the insurance paid out. This is a cost-effective trust, and the purpose of this trust would only be to have your offshore insurance pay out here.
You can also leave money to an offshore trust via offshore insurance and your children in SA will have the option to pursue international education or setting up in another country.Be cautious of implementing cover without careful consideration and planning. Address your offshore business risks via offshore insurance to have peace of mind with regards to the value of shares and how it will be bought out.
Source: Insurance Report (insurancereport.net)