BEQUESTS
A lot of people do not have family members whom they would like to add as beneficiaries in their will. In this case it is possible to name a registered public benefit organisation as beneficiary in your testament. Benefiting a charitable organisation could also exempt your estate from estate duty.
Section 4(h) of the Estate Duty Act determines that bequests made to public benefit organisations (as described in the Income Tax Act) should first be deducted from the net value of your estate before estate duty is determined.
Example
If your estate has a net value of approximately R4,5 million, and no other deductions in terms of section 4 of the Estate Duty Act is applicable, approximately R1 million (R4,5 million less standard allowance of R3,5 million) will be taxable at 20%. However, if you bequeath roughly R1 million to a registered charitable organisation, your estate will not be liable for any estate duty. Your bequest therefore not only supports a prospective student, but also reduces or eliminates your liability towards SARS.
THE RAPPORT EDUCATION FUND
The Rapport Education Fund (REF) is a public benefit organisation in terms of section 10(1) of the Income Tax Act. The REF is a countrywide fund which provides financial assistance to young Afrikaans speaking students who would like to study after school, but do not have the required funds. The REF focuses specifically on training and education for students who would like to qualify themselves as teachers who lecture in Afrikaans as medium. The REF also awards bursaries for other studies.
There is currently a large demand for assistance and the REF simply cannot meet the need. Your involvement will enable us to award more bursaries to promising students and consequently fulfil the mission of the fund.
WHY SHOULD I LEAVE A BEQUEST TO THE RAPPORT EDUCATION FUND?
- By leaving a bequest, you create an opportunity for a student. You invest in the future of a young Afrikaans speaking student who would like to study teaching. You consequently make a contribution to a young person’s future since a tertiary qualification will always be to his advantage.
- The full amount bequeathed to the Rapport Education Fund is exempted from estate duty, irrelevant of the size of the bequest.
HOW DO I LEAVE A BEQUEST?
If you already have an existing will, it is easy to add a codicil which names the Rapport Educational Fund as a beneficiary. Since codicils are signed independently from your will, it isn’t necessary to draw up a new will. The codicil will be read with your will. A pro forma codicil is available on our website for your benefit.
Your bequest can take several forms, e.g.:
- a specified amount;
- a specified portion/percentage of the balance of your estate;
- an individual valuable item (property, shares, etc.); or
- the balance of your estate.
We recommend the following wording when drafting your Will or adding a codicil:
I (name) bequeath (the residue of my estate/percentage of my estate/specified amount) to the Rapport Education Fund, Registration No 041-319NPO with domicilium et executandi cnr DF Malan and Eendracht Streets, Kloofsig, Centurion, Pretoria, to be used at the sole discretion of the Rapport Education Fund for the execution of said organisation’s objectives in South Africa.
Please inform us if you have decided to benefit the Rapport Education Fund in your Will.
Phil-Marie Roberts
Tel. : (021) 406-3699
Cell : 073 122 8800
Email: Philmarie.Roberts@rapport.co.za