In France, blood ties are sacred. The children therefore enjoy preferential treatment from the tax authorities: a check for 100,000 euros on assets bequeathed by each parent and, during their life, up to 263,730 euros in donations, every 15 years, without any tax. As for the children of the partner (spouse, PACS or cohabitant), they have no right to anything as they are not heirs of the deceased. However, devices such as the donation-part “conjunctiva” and life insurance allow the head of the family not to forget anyone, minimizing the taxes to pay.
The amount of the tax deduction granted is renewable every 15 years. Nothing prevents a parent from giving their child a gift during their lifetime. But for the operation to be tax-free, the amount of the donation must not exceed € 100,000. Each child can thus receive 100,000 euros from one parent and 100,000 euros from the other parent, all without paying taxes. The operation is renewable every 15 years. That said, several types of simple donations coexist. There is the “advance of the inheritance” donation, intended to help an ad hoc but sufficiently large child (purchase of a studio apartment for example) so that, out of concern for fairness towards the other heirs, it comes as a deduction from his future share of inheritance.
There is also the “out of inheritance” donation, which, on the contrary, is granted to the child in addition to his share of the inheritance. He is therefore authorized only if his amount does not exceed the donor’s “available share”, or the part of his assets that he can freely dispose of. The only difficulty, especially if the donation concerns an asset and not a sum of money, is to estimate its value, because, between the day the donation took place and the day the succession is opened, there may be appreciations or devaluations. worth .
Last type of donation existing, the “present for use”. It has no tax or equity implications. No tax to pay, no equity to be respected between direct descendants, under two conditions: the donation must be linked to an exceptional event (birthday, wedding, passing an exam, etc.) and not be disproportionate to the standard of living of the donor, that is, according to the most recent jurisprudence, not to exceed 2% of the total value of his assets each year.
Money given excluding taxes if the parent is under 80 and the child is of age. The exempt donation of 100,000 euros granted to a child can sometimes be supplemented by a “family gift in money” of 31,865 euros, even without any tax. For this purpose it is sufficient that the parent is less than 80 years old at the date of the donation and that the child is at least 18 years old. The second parent can do the same, under the same conditions. In exchange, by combining the classic donations of 100,000 euros per parent and family donations in cash (which can be made in cash, by check or bank transfer), each child can thus receive up to 263,730 euros, every 15 years, without any fees from to pay.
Sharing the donation
Avoid conflicts between children while still guaranteeing tax advantages. This form of donation consists in the sharing of all or part of a parent’s assets among their children. He also benefits from a child allowance of € 100,000. Compared to a simple donation, its main advantage is that the assets assigned to the children (in equal or unequal shares when each receives at least the reserve to which he is entitled) does not have to be revalued at the opening of the succession. No objection is possible.
However, as with a simple donation, sometimes a shared donation can be canceled. Therefore, the arrival of a child in the donor’s home will result in its cancellation if this child requests it. Failure to execute the charges indicated in the deed (in exchange for the donation) also constitutes a reason for cancellation. For example, a child receives a family asset, but it is up to him to take care of it. There are also cases of ingratitude on the part of a child who has behaved very badly towards his parents.
Sharing the conjunctiva donation
Help given to children from first bed. When the spouses are married and one of them has children from a first marriage, the latter are penalized compared to the couple’s children, the only ones to inherit from both parents. To restore equity, the conjunctive donation-partage allows spouses to distribute their common goods to all children, regardless of the union they come from.
Advantage for those of the first bed: they benefit from a reduction of 100,000 euros on the inheritance transferred to each person (instead of taxation from the first euro) and from the reduced scale of donations between parents and children (instead of the 60% tax between children and stepchildren). It will obviously be necessary to be careful not to deprive the other children of their legal inheritance.
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A strong tax bonus for all payments made before age 70. To pass on a good amount of capital to children, life insurance remains a formidable tool: they often have no taxes to pay. Respect for the financial balance within the siblings is not even obligatory. For example, you can allocate 90,000 euros to each of your two daughters, students, born from your current marriage, and 15,000 euros only to your eldest son, born from a first union and perfectly successful in his profession. To each according to his needs, therefore.
The only limit to be respected is that of not affecting the legal share of each of his children (25% of their assets per child of three children), which could lead the dissatisfied to ask the judge to reinstate the contracts in the succession. Nothing beats life insurance for gratifying your partner’s children either. Indeed, the beneficiaries of such contracts may not have any family relationship with the insured, which is precisely the case with these children who are completely deprived of any inheritance benefits.
As foreseen by the law, the only constraint for the insured who wants to make him benefit as much as possible from the golden taxation of the investment is to finance his contract before the completion of his seventieth birthday. Therefore, all payments made will be transmitted tax free within the limit of 152,500 euros per beneficiary.
In the event of premature death, the planned capital is transferred tax-free. If you have no significant assets, your accidental disappearance can cause serious financial problems for your family, and especially for your children if they are still young. A good way to secure your future is then to enter into a death contract: in exchange for the contributions paid, the insurer undertakes, if death (and sometimes disability) occurs during the period covered – for example 10 or 20 years -, to pay them the expected capital, excluding taxes.
To notice : in addition to the guaranteed amounts, the contributions to be paid depend on your state of health (exams may be required), but also on your age (read our selection table below).
What a grandson can receive from every grandfather, every 15 years, excluding taxes
(1) The two types of donation can be combined. (2) Achievable by every grandfather to every grandson. (3) Furniture, cars, jewelry, real estate… (4) Cash, checks or wire transfers.
To help her grandchildren by exempting them from taxes, there is life insurance. But we can also give them donations of goods or money: everyone is entitled to an allowance of € 31,865 every 15 years. If the four grandparents join together, the amount can rise to 127,460 euros (4 x 31,865 euros), or even double if each grandfather is under 80 years old and also grants them a “family gift” (cash, checks or -transfer), also limited to 31,865 euros. The only condition for this doubling: the grandson must be of age.
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