Donation to children: up to 263,730 euros exempt every 15 years

In France, blood ties are sacred. Children therefore enjoy preferential treatment from the tax authorities: a compensation of 100,000 euros on assets that each parent has bequeathed, and during their lifetime up to 263,730 euros in donations, all 15 years, without tax. As for the partner’s children (spouse, PACS or cohabitant), they are not entitled to anything as they are not heirs to the deceased. Devices such as the “subjunctive” donation-sharing and life insurance nevertheless allow a family head not to forget anyone while minimizing the fees to be paid.

single donation

The amount of the tax relief granted can be extended every 15 years. Nothing prevents a parent from giving a gift to their child during their lifetime. However, in order for the operation to be tax-exempt, the amount of the donation must not exceed 100,000 euros. Each child can thus receive 100,000 euros from one parent and 100,000 euros from the other parent, all without paying tax. The operation can be renewed every 15 years. That said, several types of simple donations exist side by side. There is the donation “prior to the inheritance”, which is set aside to help a child on an ad hoc basis, but large enough (purchase of a studio for example) that for the sake of justice to the other heirs, it comes as a deduction in his future inheritance share.

There is also the gift “outside the estate”, which in turn is awarded to the child in addition to his or her share of the estate. It is therefore only allowed if the amount does not exceed the donor’s “available quota”, in other words the part of his wealth that he is free to dispose of. The only difficulty, especially if the donation relates to an item and not a sum of money, is to estimate its value, because between the day the donation took place and the day the inheritance is opened, there may be increases in value or impairment.

Last type of existing donation, the “gift of use”. It has no tax or property consequences. No tax to pay, no equity to be respected between direct descendants, however, under two conditions: the donation must be linked to an extraordinary event (birthday, wedding, passed an exam, etc.) and not be disproportionately high to the standard of living of the donor , that is, according to recent case law, must not each year exceed 2% of the total value of his inheritance.

Family donation

Money given exclusive of tax if the parent is under 80 and the child is an adult. The exempt donation of 100,000 euros to a child can sometimes be supplemented with a “family gift of money” of 31,865 euros, also without tax. It is sufficient for this that the parent is under 80 years of age on the date of donation and that the child is at least 18 years old. The other parent can do the same under the same conditions. In return for this, by combining the classic donations of 100,000 euros per. parent and the family donations of money (which can be made in cash, by check or transfer), each child can thus receive up to 263,730 euros every 15 years, without having to pay fees.

Donation sharing

It avoids conflicts between children and at the same time provides tax benefits. This type of donation consists of dividing all or part of a parent’s assets between their children. She also benefits from a benefit per. children of 100,000 euros. Compared to a simple donation, its main advantage is that the property allotted to the children (in equal or unequal parts, when each receives at least the reserve to which he is entitled) does not have to be reassessed at the opening of the succession. No dispute is possible.

However, as with a simple donation, a shared donation can sometimes be canceled. Thus, the arrival of a child at the donor’s home will lead to its cancellation if that child so requests. Failure to enforce the fees stated in the deed (in return for the donation) is also part of the ground for cancellation. For example, a child receives a family asset, but it is up to him to take care of it himself. There are also cases of ingratitude in a child who has behaved very badly towards his parents.

Conjunctive donation sharing

Help given to children from first bed. When the spouses are married and one of them has children from the first marriage, the latter is punished in relation to the couple’s children, the only ones who inherit from both parents. To restore justice, the conjunctive donation separation allows spouses to distribute their joint property among all children, regardless of which association they come from.

Benefit for them of the first bed: they benefit from a reduction of 100,000 euros on the estate passed on to each (instead of taxation from the first euro) and from the reduced scale for donations between parents and children (instead of 60% tax between children and stepchildren) parents). It will of course be necessary to take care not to deprive the other children of their legal inheritance.

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Life insurance

A great tax bonus for all payments made before the age of 70. To pass on a fair amount of capital to their children, life insurance remains a tool of formidable efficiency: they often will have no tax to pay. Respecting the financial balance of siblings is not even mandatory. For example, you can allocate 90,000 euros to each of your two daughters, students, born of your current marriage, and 15,000 euros only to your older son, from a first union and after having full success in his profession. To each according to his needs, therefore.

The only limit of respect is not to interfere with the legal share of each of his children (25% of your property per child from three children), which could encourage the dissatisfied to ask the court to reinstate the contracts in the inheritance. Nothing beats life insurance to satisfy your partner’s children. In fact, the recipients of such contracts can have no family relationship with the insured, which is precisely the case for these children, who have no inheritance benefit.

As the law prescribes, the only restriction for the insured who wants them to benefit as much as possible from the golden taxation of the investment is to finance his contract before his seventieth birthday. Therefore, all payments made will be transferred tax-free within the limit of 152,500 euros per. recipient.

Death insurance

In the event of premature death, the planned capital is transferred tax-free. If you do not have a large property, 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 their future is then to sign a death contract: In return for the contributions paid, the insurance company undertakes if death (and sometimes disability) occurs during the covered period – e.g. 10 or 20 years – to pay them the planned capital, excluding taxes.

To note: in addition to the guaranteed amounts, the contributions to be paid depend on your state of health (examinations may be required), but also on your age (read our selection table below).

What a grandchild can receive from each grandparent, every 15 years, excluding taxes

Capital

(1) The two types of donations can be combined. (2) Can be obtained by all grandparents of each grandchild. (3) Furniture, car, jewelry, real estate … (4) Cash, check or transfer.

To help his grandchildren by exempting them from tax, there is life insurance. But we can also give them donations of goods or money: everyone is entitled to 31,865 euros in benefits every 15 years. If the four grandparents join, the amount can increase to 127,460 euros (4 x 31,865 euros), or even double if each grandparent is under 80 and additionally gives him a “family gift of money” (cash, check or transfer ), also limited to EUR 31,865. The only condition for this doubling: the grandchild must be of legal age.

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