The partial generational leap possible in Wallonia from 2023

In our time, we often inherit from our parents at a relatively old age, when we are already well established in life, while our children would gladly benefit from a little help.

In the context of a succession, the appeal to a generational leap it can therefore be very interesting. Specifically, this technique allows people who inherit from their parents to give up their share of the inheritance for the benefit of their children.

It’s just not that simple. Why so far in the Brussels region and the Walloon region, it must be a complete leap. Clear, it’s all or nothing. Parents are obliged to do this give up the entire assets (via a statement before a notary), which most people either don’t want or can’t afford. It is therefore rather dissuasive and, consequently, very little used.

And tax optimization is limited. If the operation certainly makes it possibleprevent inheritance tax from being paid twice on the same estate (on the death of his grandparents then on the death of his parents), in Wallonia and Brussels, he stops there. The inheritance tax to be paid by the grandchildren is identical to that which the renunciate would have paid. In Flandersinstead, the inheritance tax is calculated on the net share of each heirwhich allows you to limit the overall impact.

Possible in Flanders from 2018

Today, only the Flemish Region has implemented a partial generational leap which allows parents to pass only part of their inheritance directly to their children, which is obviously more realistic. In this case we speak of fast donation.

A direct line heir therefore has the option of donate all or part of the inheritance who has collected, and for which he has paid the inheritance tax, for the benefit of their descendants on 1uh degree, benefiting from a 0% donation tax.

It can leave room for reflection since the donation must take place within 12 months of death.

The donation can relate to movable assets that do not necessarily have to come from the assets (for example, a car, when the donor has only inherited a sum of money) or movable property, which must come from the inheritance.

“The gift tax exemption applies only up to the value subject to inheritance tax. The exemption will then be deducted pro rata if the value of the donated property is greater than the value on which inheritance tax is payable. They are successions have been calculated. This will be the case, for example, when the value of a set of inherited securities has increased at the time of rapid donation “, reads an article published in Le Fiscologue. “The exemption on a quick gift cannot exceed the inheritance tax paid by the donor.”

In the Walloon region since 2023

In the Walloon region, the decree establishing a similar mechanism was voted in May 2019, but it is not never entered into force. However, the spokesman for the new Finance Minister, Adrien Dolimont, assures us of this Soon. “Whether by parliamentary or governmental intervention, the goal is for this decree to come into force in 2023. “

Until then, however, it cannot be ruled out that some details will still be changed.

However, from next year, a parent who inherits from their (grandfather) -parent can therefore theoretically donate to their children at a rate of 0%, subject to compliance with a series of conditions.

  • inheritance rights (direct line) must have been paid;
  • The donation must be made within 90 days of filing the declaration of succession (which must be done within 4 months of the death in Belgium);
  • The donation must be made by notarial deed;
  • The donation must concern the full ownership of the assetsbut it may be subject to other conditions.

In Brussels the discussion has just begun …

In the Brussels-Capital Region, the possibility of performing a partial compilation jump does not yet existbut the question is on the table.

The government agreement provides for the modernization and simplification of the inheritance tax system to better adapt it to changes in family structures. “The generational leap will be analyzed in this contextFinance Minister Sven Gatz (Open VLD) said in response to a question from MP David Weystman (MR) last February.

“The generational leap allows grandchildren to inherit directly from their grandparents. In any case, the inheritance rights are calculated as if the parents had accepted the inheritance.. With the game of progressivity, the highest slices are reached more quickly. The target. the goal is to insure it each of the grandchildren pays inheritance tax on the part they actually inherited. “

“We will present the texts in due course in Parliament – in principle, in in the year 2023 – for a debate that promises to be very interesting “.

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