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The New Generation Will
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Estate Duty R40 000 in each R1million is extra paid as estate duty unless a will has the surviving spouse or a charity as residuary heir.  A YFCWill ensures this extra is never paid but rather split between other heirs with a little to a charity of the testators choice. The legislated rate of estate duty is 20% but the estate duty paid is 25% of bequests over R3.5million that caused the estate duty.  Bequests to surviving spouses are free of estate duty. R3.5million can be given to children free of estate duty. For each additional R1million R200 000 is SARS’s take and children get R800 000. What the children receive is what causes the estate duty as if a will leaves everything to the surviving spouse there is no estate duty. e.g. Will leaves R3.5million to be split between  children and everything else to the surviving spouse then there is no estate duty. If a will leaves more than R3.5million to children the portion above R3.5million is subject to estate duty: e.g. Will leaves everything to children (there was no surviving spouse) and the estate is worth R10million the estate duty is calculated as follows Note that the children received R8.7million & remember bequests to recognised charities are a deduction If the will left R8.7million to the children and left the remainder to a registered charity the estate duty calculation would be as follows Some people may consider giving the charity R260,000 a little bit much even though the heirs received what they would have under the original will simply giving everything to the children. Using a YFCWill the testator can achieve the following result. Go to services for as YFCWill that assists anybody whose net assets and insurance on their life is expected to exceed R3.5million.
Estate duty Estate duty