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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: an allowance of 100,000 euros on assets bequeathed by each parent and, during their lifetime, up to 263,730 euros in donations, all 15 years, without any tax. As for the children of the partner (spouse, PACS or cohabitant), they are not entitled to anything since they are not heirs of the deceased. Devices such as the “conjunctive” donation-partage and life insurance nevertheless allow a head of family to forget no one, while minimizing the fees to be paid.

single donation

The amount of tax relief granted is renewable every 15 years. Nothing prevents a parent from making a gift to their child during their lifetime. But for the operation to be exempt from taxes, 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 taxes. The operation is renewable every 15 years. That said, several types of simple donations coexist. There is the donation “in advance of the inheritance”, allocated to help a child on an ad hoc basis but sufficiently large (purchase of a studio for example) so that, out of concern for fairness vis-à-vis the other heirs, it comes as a deduction from his future share of inheritance.

There is also the gift “outside the estate”, which, conversely, is granted to the child in addition to his or her share of the estate. It is therefore authorized only if its amount does not exceed the “disposable quota” of the donor, in other words the part of his assets which he can dispose of freely. The only difficulty, especially if the donation concerns a good and not a sum of money, is to estimate its value, because, between the day when the donation took place and the day when the succession is opened, appreciations or impairments in value may appear.

Last type of existing donation, the “present of use”. It has no tax or estate implications. No taxes to pay, no equity to be respected between direct descendants, under two conditions however: 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 to say, according to the most recent case law, not to exceed each year 2% of the total value of his heritage.

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Family donation

Money given excluding tax if the parent is under 80 and the child is an adult. The exempt donation of 100,000 euros granted to a child can sometimes be supplemented by a “family gift of money” of 31,865 euros, also without any tax. It is sufficient for this that the parent is under 80 years old on 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 return for this, by combining classic donations of 100,000 euros per parent and family donations of money (which can be made in cash, by check or by transfer), each child can thus receive up to 263,730 euros, every 15 years, without any fees to be paid.

Donation-sharing

It avoids conflicts between children while granting tax advantages. This form of donation consists of a sharing of all or part of a parent’s assets between their children. She also benefits from an allowance per child of 100,000 euros. Compared to a simple donation, its main advantage is that the property allocated 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 reassessed at the opening of succession. No dispute is possible.

However, as with a simple donation, a shared donation can sometimes be cancelled. Thus, the arrival of a child in the home of the donor will lead to its cancellation if this child so requests. The non-execution of the charges listed in the deed (in return for the donation) is also part of the grounds 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.

Conjunctive donation-sharing

Help given to children from a first bed. When the spouses are married and one of them has children from a first marriage, the latter are penalized compared to the children of the couple, the only ones to inherit from both parents. To restore equity, the conjunctive donation-partage allows the spouses to distribute their common property among all the children, regardless of the union from which they come.

Advantage for those of the first bed: they benefit from a 100,000 euro reduction on the estate passed on to each (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 step-children parents). It will obviously be necessary to take care not to deprive the other children of their legal inheritance.

Life insurance

A large tax bonus for all payments made before the age of 70. To pass on to his children a nice capital, life insurance remains a tool of formidable efficiency: they will often have no tax to pay. Respecting the financial balance within the siblings is not even compulsory. 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 having been perfectly successful in his profession. To each according to his needs, therefore.

The only limit to respect is not to encroach on the legal share of each of his children (25% of your estate per child from three children), which could encourage the dissatisfied to ask the court for the reinstatement of the contracts in the succession. Nothing beats life insurance either to gratify your partner’s children. Indeed, the beneficiaries of such contracts may have no family relationship with the insured, which is precisely the case of these children who have no inheritance benefit.

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

Death insurance

In the event of premature death, the planned capital is transferred tax-free. If you do not have a large estate, your accidental disappearance could cause serious financial problems for your family, and especially for your children if they are still young. A good way to guarantee their future is then to take out a death contract: in return 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 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 tax

Capital

(1) The two types of donation can be combined. (2) Achievable by every grandparent to every grandchild. (3) Furniture, car, jewellery, real estate… (4) Cash, check or transfer.

To help his 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 31,865 euros in allowances every 15 years. If the four grandparents join in, the amount can rise to 127,460 euros (4 x 31,865 euros), or even double if each grandparent is under 80 years old and grants him, in addition, a “family gift of money” (cash, check or -transfer), also limited to 31,865 euros. The only condition for this doubling: the grandchild must be of legal age.

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