By Sybil Lotriet
Charities and non-profit organizations help fill needs in areas that are often underserved. They uplift local communities and provide for essentials. However, they are largely dependent on donations. Providing for charity in your will is a great way to give back to the community and leave a lasting legacy.
Leaving a donation to charity can be beneficial to both you and the organization you care about. This allows you to support causes you are passionate about even when you are no longer here, and it also reduces inheritance tax that may be levied on your estate.
Donation's tax benefits
Donations specified in a will to certain charities may be either exempt from tax or deductible from the estate for tax purposes. The net estate is reduced by the amount of the donation, so the amount of inheritance tax payable may be reduced or even zero.
In addition, donation tax is only applied when the donation is more than R100 000 in a single tax year.
How to provide for charitable donations in your will
You can include a charitable gift in your will simply by naming a charity as a beneficiary of cash, shares or other property in your will.
You can indicate whether you want to donate a fixed amount, a specific item, or whatever asset remains once the other gifts have been distributed. If you donate a specific amount in your will, however, you will need to review your will regularly to determine whether it is enough or too much. If you donate a percentage of your estate, this allows some flexibility as the values of your assets fluctuate. To be legally valid, your will must be formally witnessed and signed.
The process can get complicated and may leave you with a lot of frustrations and uncertainties. However, Eksekuteurs vir Boedels en Testamente has a highly skilled team of specialists who can help you facilitate the process, both for you and the charity you wish to support. Feel free to contact us for further enquiries.
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