Make a meaningful difference
When the time comes, you want to leave a legacy that not only reflects your wishes, but also provides your loved ones with better financial outcomes.
You can – by making a difference to your favourite charity and remembering them in a specific way with a YFC Codicil (Your Family and Charity Codicil).
Crucial component of effective estate planning
For estates with net assets over R3.5 million
Eliminates tax on tax
By structuring your estate duty correctly
Heirs can receive up to 8% more
Depending on your chosen generosity factor
Favourite charities benefit from tax savings
Without taking away from your heirs' inheritance
How the YFC Codicil creates a more efficient tax structure
The traditional estate administration approach
Estate duty is assessed on the assets remaining after estate liabilities, estate administration costs and the tax-free assets of R3.5 million have been deducted
The estate duty is included in the remaining assets
The estate ends up paying tax on tax as a result
The YFC Codicil approach
It specifies what heirs receive, leaving a residue in the estate from which the estate duty and charity benefit must be paid
The residue is a deduction before taxation
The residue to the charity is tax deductible
Tax is always paid first from the residue and the rest is left for your charity
Choose a charity and generosity factor
Your charity needs to be a recognised Public Benefit Organisation (PBO) in order for your estate to receive the tax benefit.
You need to choose a generosity factor from 1 too 100, which is a percentage of the amount left in the residue after the estate duty has been paid.
YFC Codicils are risk-free
You don't need to ever disclose your wealth, heir or will details
Your heirs will never receive less than they would have under your original will
The precedence is per court judgment
Has successfully been used in assessed estates