Charitable bequest to the Homestead (PBO 181113 1038) is an easy and effective way to leave a lasting legacy.
A charitable bequest is simply a distribution from your deceased estate to the Homestead by a bequest in your Will.
Deduction on Estate Duty: A deduction for estate duty purposes is allowed in respect of the value of property bequeathed to a public benefit organisation ( The Homestead is a ‘qualifying PBO’) exempt from tax in terms of the Income Tax Act.
Different types of Bequests:
• A specific sum of money: The simplest form of bequest, but does not consider inflation or changes in the value of your estate.
• A percentage of your estate: This ensures a fair distribution among all your beneficiaries, regardless of any changes in the value of your estate.
• The residue of your estate: Whatever is left over after all taxes, liabilities and other bequests have been paid is known as the residue. You can bequeath the whole of the residue, or a percentage of it.
• A Life Assurance policy: An existing policy, taken out years ago to safeguard a young family and no longer relevant, can be ceded to the Homestead, or you can take out a new policy with the Homestead as the beneficiary.
• Specific items: Valuable items such as real estate, motor vehicles, antiques, art works, jewellery, etc. may be bequeathed to a Public Benefit Organisation such as the Homestead
• Shares: You can donate stock exchange traded shares directly to the Homestead. This would save capital gains tax.
• Setting up a charitable trust: This can be an option in certain circumstances when for instance considerable sums are involved and you might want your bequest to be used for certain specific purposes over a number of years, for instance only to be spent on the children’s education and development, or for social worker salaries, or for administrative purposes.