Giving NFT to your children throughout your life is relatively easy and can even be tax free. If the tax site still doesn’t mention NFT on its donation page, it will. In the meantime, you can make a donation during your life or by will to your children: money, material assets (cars, jewelry, etc.), real estate and securities (stocks, shares, etc.), NFTs or cryptocurrencies.
If you’ve made it this far, you already know what an NFT is. If not, don’t hesitate to consult this article which explains everything to you.
What does the taxman say about donations?
You may not know it, but it risks being taxable when you give something to your children (if you give to charity, however, you can have a tax credit. You will find the precise and complicated rules on the website). However, there are exemptions: each parent can give up to € 100,000 to their child. A couple can therefore pass on € 200,000 to each of their children every 15 years in one or more installments.
Children can declare this donation by accessing their space on the tax site: there is a ” You received a donation, please declare it“They can also submit form 2735 in duplicate to the tax services.
Donating NFTs (or cryptocurrencies) while alive?
As we have seen, you can give anything you want, cash, cryptocurrency, jewelry … As long as what you give is legal, of course. To be less taxed, make donations with allowance, otherwise you will go through the tax box. The prices paid for your NFTs are easy to prove. On the other hand, if you bought them by making a capital gain on your cryptocurrencies, there will likely be an academic calculation to estimate the flat tax. You can donate your NFTs by making a transfer to the wallets of your children or, if you have a single child, you give him the private keys of said wallet.
Your notary won’t be able to do anything for your heirs if he doesn’t have your private keyswallet. You can entrust him with the management of private keys: he will keep them in his “real” safe on physical support or in his electronic safe. This custodial service comes at a cost and carries risks, but the notary has insurance. If the firm is hacked or the system hacked, inquire about the amount of compensation provided. The cost of a holographic will, i.e. simply registered with a notary, is currently less than 30 euros. You can also write there where you have hidden your private keys. If you are a gambler, think of some puzzles: but if your heirs cannot find your keys, this will complicate the notary’s job. How is the balance sheet established?
If you have opted for a bank safe, this safe will no longer be accessible at your death without formalities. Also for power of attorney holders.
Investing in NFT is obviously not without risk: digital art is totally random. Jack Dorsey’s first tweet sold as an NFT for $ 2.9 million in 2021 is worth next to nothing today. The “Bored Ape Yacht Club (BAYC)” monkeys have a rather uncertain future. So, rather than bequeathing works that may no longer have any value, why not simply invest in bitcoin (BTC)? Perhaps your children will then be able to consider spending a vacation in El Salvador, or even settling there? (Spending your bitcoins won’t make you forget your disappearance, but at least they will do something …)
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Subprime, financial crises, runaway inflation, tax havens … Bitcoin was designed for greater transparency and perhaps to finally change the game. I try to understand this new environment and try to explain it myself. The road is undoubtedly long, but it is worth it.