How South Africans Can Reduce US Estate Tax When Investing in US Shares

Summary

Many South Africans want to invest in US shares but worry about paying US estate tax when they pass away. A popular way to reduce this risk is by investing through an offshore investment wrapper, sometimes called a sinking fund. In this setup, the wrapper, not the investor, legally owns the shares. This means the investor may avoid direct exposure to US estate tax, which can be costly for non-US residents. Using an offshore investment wrapper helps protect your assets and can make US investments simpler and safer for South African investors concerned about estate planning.