Children’s donation: Discount up to 263,730 euros every 15 years

Blood ties are sacred in France. Children therefore enjoy preferential treatment from the tax authorities: an allowance of 100,000 euros on the property donated by each parent and, in their lifetime, a grant of up to 263,730 euros, all 15 years, without any tax. For the children of the spouse (husband, PACS or cohabitant), they are not entitled to anything because they are not the heirs of the deceased. Nonetheless, devices such as “additive” donations and life insurance allow the head of the household to never forget anyone, and reduce fees.

Single donation

The amount of tax relief paid is renewable every 15 years. Nothing prevents a parent from giving a gift to their child during their lifetime. But for the exemption from operation tax, the amount of grant should not exceed 100,000 euros. Each child thus receives 100,000 euros from one parent and 100,000 euros from the other parent, all without paying taxes. Renewable every 15 years of operation. That said, different types of simple grants coexist. There are “inheritance advance” donations, allocated to help a child on an ad hoc basis but in sufficient quantities (for example buying a studio) so that, due to concerns about fairness with other heirs, it comes as a deduction from part of his future inheritance.

There are also “out of inheritance” gifts, which, in contrast, are given to the child in addition to the inheritance portion. So it is only allowed if the amount does not exceed the donor’s “disposable quota”, in other words part of his assets which he can dispose of freely. The only difficulty, especially if the donation is not related to a good and the amount of money, is to estimate its value, because, on the day the donation was made and the day it was opened in inheritance, there may be a value or error. .

The last type of existing grant, “current use”. It has no tax or estate effect. No tax will be paid, no equity will be awarded directly to the descendants, but on two conditions: the grant must be associated with an exceptional event (birthday, marriage, passing an examination, etc.) and not be inconsistent with the standard of living of the donor. , According to the most recent case law, will not exceed 2% of the total value of its heritage each year.

Family grant

If the parents are under 80 years of age and the child is an adult, the tax is paid. A 100,000 euro waiver for a child can sometimes be offset by a “family gift” of 31,865 euros, even tax-free. Suffice it to say that the parents are under 80 years of age and the child is at least 18 years of age on the date of donation. The second parent can do the same under the same conditions. In return, combining the classic grant of 100,000 euros per parent and the family grant (which can be made in cash, by check or by transfer), each child thus receives up to 263,730 euros, every 15 years, without anything. Fees must be paid.

Donate

This avoids conflicts between children when providing tax benefits. This form of grant consists of sharing all the property or part of the parents among their children. She also benefits from an allowance of 100,000 euros per child. Compared to a general grant, its main advantage is that the property allocated to the children (in equal or unequal shares when each receives the minimum reserve for which he is entitled) does not need to be re-evaluated at the beginning of the inheritance. No debate is possible.

However, like a general 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 this child requests. Non-execution of the listed charges in the document (in exchange for grant) is also part of the reason for cancellation. For example, a child gets a family property, but it is a matter of caring for him. There are also instances of ungratefulness on the part of a child who has treated his parents very badly.

Collective donations

Helping children from the first bed. When the husband / wife is married and one of them has children from the first marriage, the latter is punished more than the children of the couple, inheriting from both parents. To restore equity, joint donations allow the couple to distribute their common property among all the children, regardless of the union they come from.

Benefits for the first bed: They each benefited from a 100,000 euro reduction in the estate given to each (instead of tax from the first euro) and a reduced scale of grants between parents and children (instead of 60% tax on children and stepchildren). Care must be taken to ensure that other children are not deprived of their legitimate inheritance.

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Life insurance

A big tax bonus for all payments made before the age of 70. To give her children a fair amount of capital, life insurance remains a powerful skill tool: they often do not have to pay any taxes. Respecting the financial balance between siblings is not even mandatory. For example, you can allocate 90,000 euros for each of your two daughters, a student born in your current marriage, and 15,000 euros for your eldest son only, from the first union and perfectly successful in his profession. So everyone according to his need.

The only limitation of respect is not to occupy the legal part of each of his children (25% of your property for every three children), which may encourage the dissatisfied person to ask the court to restore the inheritance agreements. Life insurance loses nothing to satisfy your partner’s children. In fact, the beneficiaries of such contracts cannot have any family ties with the insured, which completely deprives these children of any inheritance benefits.

According to the law, the only hurdle for insured people who want to benefit as much as possible from the golden tax on investment is to finance their contract before their 70th birthday. Therefore, all payments made will be remitted tax-free within the limit of 2 152,500 per beneficiary.

Death insurance

In case of untimely death, the planned capital is transferred tax free. If you do not have significant assets, your accidental disappearance can cause serious financial problems for your family and especially for your children if they are still young. One of the best ways to guarantee their future is to enter into a death contract: in return for the contributions, the insurer accepts, if death (and sometimes disability) occurs within the covered period – for example 10 or 20 years -, paying their planned capital, taxes. Except.

Note: In addition to the guaranteed amount, the contributions made depend on your health condition (testing may be required), but also on your age (see our selection table below).

What grandchildren can get from each grandparent every 15 years, excluding taxes

Capital

(1) Two types of donations can be combined. (2) Achieved by every grandchild from every grandchild. (3) Furniture, cars, jewelry, real estate … (4) Cash, checks or transfers.

To help her grandchildren with tax breaks, she has life insurance. But we can also donate their goods or money: each is entitled to an allowance of 31,865 euros every 15 years. If four grandparents join, the amount may increase to 127,460 euros (4 x 31,865 euros), or even double if each grandparent is under 80 years of age and receives a grant, in addition, a “family gift”. (Cash, check) or-transfer), also limited to 31,865 euros. The only condition for this doubling: grandchildren must be of legal age.

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