Your Family & Charity Codicil

No. Your heirs receive more should the estate duty need to be paid and you have chosen a generosity of less than 100. Your heirs never receive less and only the correct tax is paid.

If your estate (net assets before estate duty) is R10 million, your heirs receive R8.7 million with a traditional will. Add a YFC Codicil and a generosity factor of 1 and your heirs receive R8 914 500, R214 500 extra.

In your will you give money and/or items to heirs but you must leave some for tax and for charity you chose. What you leave is referred to as the residue, which is a deduction in the tax calculation. The formula in YFC Codicil works out what heirs would receive traditionally and increases this based on your generosity to leave sufficient in the residue to pay the correct tax and a portion to the charity of your choice. NB Your heirs never get less than what they would have from the traditional will only more based on how generous you are to the charity. Tax is always first paid from the "residue" leaving the remainder for the charity.

Assets are always distributed as per your will YFC Codicil only applies if the value of the estate is more than the tax-free amount at the date of death. Any testator who thinks their estate might exceed the tax-free amount is not at risk through having a YFC Codicil It is legal as determined by the judgement in SARS vs Executor Estate/ Late W E Frith by the Bloemfontein Appeal Court It always pays the correct tax rate at the time of death Specific bequests are determined at the date of death taking into consideration all allowances and rates at that date

Yes. To qualify for the deduction the residue must be left to the charity.

The YFC Codicil requires that you choose a generosity factor from 1 to 100 for your specified charity. Choosing a generosity of 100 means you wish to leave all the benefit from YFC Codicil to your chosen charity. Your heirs will never receive any less.

When the executor has determined the net assets and deemed assets of the estate, identified rates, allowances, deductions and disallowable expenses they insert this information into the YFC Codicil, enabling the determination of the total value of specific bequests. The residue is determined by deducting the total value of specific bequests from the net asset value of the estate. The residue to a recognised charity is deductible in terms of the Bloemfontein Appeal Court judgement in determining the taxable amount. The estate duty is first paid from the residue leaving the remainder of the residue to be paid to the charity.

You can change your will at any time but when you do so you must reprint your YFC Codicil with the date of your revised will. Once you sign a new will the old YFC Codicil is null and void. Reprint your YFC Codicil, changing the date to the date of your new will and have it signed by witnesses. You can also change the charity and the generosity factor at any time.