Many charity organisations recently received substantial funds, in some cases over R1m, from clients with Malherbe Rigg & Ranwell Attorneys (MRR).
This is after the clients requested charity organisations to be named as beneficiaries in their will.
In light of this, MRR Attorneys hosted a stylish event recently and invited the organisations to acknowledge these clients.
The late estate of Sheila Masterton left R342 800 each to 11 charities, including the Benoni Central Methodist Church, Hospice East Rand and the SA Guide-Dogs Association for the Blind.
The George A Hennessy late estate left R3 184 922 each to two charities, the Animal Anti-Cruelty League and Wet Nose Animal Rescue.
The late estate of J S Keith left R3 896 000 to the National Spiritual Assembly of the Bahá’í of South Africa.
MRR director Brian MacGregor explained that adding a charity organisation to your estate is something people should consider.
“Due to the economy, charity organisations are in dire need of funds. In some circumstances, these organisations do government funding, but it’s never. They rely on the community at large. Hence, they will let our clients know they can add charity organisations to their estate,” he pointed out.
He highlighted that people don’t have to leave an entire estate to a charity.
“You can leave an amount such R1 000 to the organisation. It can make a big difference to the organisation and might not affect the estate that much.”
Furthermore, MacGregor pointed out MRR Attorneys also do free wills, not only during National Wills Week.
The charity organisations thanked MRR Attorneys for putting together the event.
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“Sheila was a member of our church. It was such a wonderful surprise to see Sheila think of us. It will help us tremendously, and we are truly grateful,” said Veronica Combrinck from the Benoni Central Methodist Church.
The stakeholders enjoyed snacks and refreshments at the event.
The head of estates at MRR Attorneys answered a few questions about adding a charity as a beneficiary to your will:
Q: How do you add a beneficiary to your will?
A: The Testator (person doing a will) merely includes a clause that an amount or percentage of the estate must be left to a charity (to be named).
Q: Can anybody leave a ‘gift’ for a charity or must there be a certain amount in the estate? Can you leave assets to a charity?
A: There is no limit to a gift left to a charity or organisation. Yes, you can leave assets like your personal items (clothing, costume jewellery) and furniture.
Q: Do many clients want to add charity organisations?
A: Unfortunately not. We bring to clients’ attention that it can be done and need not be for a large amount. Every little bit helps.
Q: Is there anything else the public should be aware of?
A: Any award to a charity is deductible for estate duty purposes, i.e. estate duty is payable if the nett value of an estate is more than R3 500 000. The award to the charity is deducted before the estate duty is calculated. If you leave your entire estate to a charity, there will be no estate duty, irrespective of the value.
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