LEAVE A BETTER LEGACY

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).

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