Donation / Succession: Points to Know Before Leaving your Property

Preparing for death and the transfer of property is a legitimate concern. To foresee, is to protect your heirs, and to avoid any conflict which could intervene after your death.

Preparing for death and the transfer of property is a legitimate concern. To foresee, is to protect your heirs, and to avoid any conflict which could intervene after your death. Your notary or your wealth adviser is at the forefront of inventorying your property and guiding you through the meanders of the law of transmissions. You will then calmly decide to transfer your real estate assets to your death or during your lifetime.

Estate: amount, deduction and distribution

The law allows six months to settle an estate after a death. If no provision has been made by the deceased, the heirs will be designated by the legal rules.

Points to know:

  • Everyone, except for the surviving spouse, will have to pay the inheritance tax that applies to the value of the immovable property transferred, once the deduction has been deducted. This depends on the relationship with the deceased. Example: the amount is 100 000 euros for a child or a parent, and 15 932 euros for a brother and a sister.
  • It is possible, through a will, to change the distribution of your assets by having the available quota. It is transferable to the person of your choice even without relationship. Nothing can be opposed on the condition that it does not encroach on the hereditary reserve, which represents the minimum share to which the heirs are entitled: children or grandchildren, spouses.
  • Before appointing your legatee, it is good to make sure that he / she will have the means to pay the important rights that will be claimed. Parents above grade 4 and non-parents will be taxed at 60%.

Donation: amount, taxation and age of the donor

It is made during the life of the donor and is irrevocable, except for rare exceptions defined by law.

Points to know:

  •  In addition to the tax benefit that can be represented by the donation of your property, the interest is that it will be resolved in full transparency with the legatees at a notary who will inform you of the consequences of this act.
  • Regarding a primary residence, it will be preferable that it is not the only source of immediate cash for the donor. Indeed, the sale of a real estate property transmitted by donation can be done only with the agreement of the legatee and the fruit of the sale is shared.
  • Most often, the donor retains the usufruct of the good. He will have the enjoyment until his death and will receive the fruits of the rents, if any. The donee retains the bare ownership of the property. Its share is calculated from the age bracket of the donor-usufructuary on the day of the donation. For example, if the donation occurs before the 61 years of the donor, his usufruct share will be 50%. It decreases by 10% for every 10 years.
  • The rights of donations are similar to those of inheritances. They take into account the allowance to which the donees are entitled: in direct line, the amount is 100,000 euros per parent per child. The donor is authorized to pay the donation rights.
  • The donation, possible every 15 years, is based on trust. However, in order to avoid unpleasant surprises, the usufructuary and the bare owner must make sure that they can meet the burdens they will incur. It is, according to the law, the bare owner who must take care of the big works: roofs, walls and fences. The usufructuary keeps the maintenance work.

Whatever the amount of the sums concerned, the evolution of the taxation of transmissions requires informing oneself before committing oneself. And know that planning your transmission provides peace of mind and has never killed anyone.