A bequest is a specific instruction that is included in your will and your Executor is compelled to act upon it. This is of course provided your estate has sufficient liquidity for the bequest.
You may bequeath a specific amount of money or a specific asset to a charity of your choice. A few examples are below:
The residue is comprised of any assets which remain in your estate after the deduction of all expenses, legacies and debts. This may include cash, vehicles, properties, investment policies etc. Once ownership is transferred into the name of the heirs, they can either choose to keep the assets or to liquidate them altogether.
To add to the attractiveness of a charitable bequest, section 4 (h) of the Estate Duty Act stipulates that any donation made to a Public Benefit Organisation is deductible for estate duty purposes.
Estate duty is payable to SARS at a flat rate of 20% for estates with a net asset value of R3.5 million and above where such estate is not bequeathed to a surviving spouse. A section 4(h) deduction will be offset against the net estate value and could reduce or eliminate an estate duty liability altogether.
Please call one of us at FPM Fiduciary Services for assistance.
011 778 9300
This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)