If you wish to give to charity on your death by including a specific bequest in your will, this may have the added benefit of reducing your estate duty. All South African taxpayers are liable for the payment of estate duty upon their death if the value of assets held in their name exceeds R3.5-million (after applicable deductions have been considered). Estate duty is a form of tax that is payable at the rate of 20% on the value of assets in excess of R3.5-million on a person's death. Assets in this case include deemed assets such as life insurance policies. As an example, if you hold assets to the value of R4-million upon your death, you will be liable for estate duty as follows: R4-million minus R3.5-million (the R3.5-million is known as the abatement) = R500000 R500000 x 20% = R100000 estate duty In such an instance, the estate duty payable by your estate will be R100000. Having to pay estate duty may cause cash-flow problems for your estate because other assets left to your heirs...
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