Inheritance: Expect more to donate to your child

A tax on a supplementary grant of 50,000 euros will be granted to each of his children every 15 years … There is no doubt that planned reforms will accelerate all direct line transmissions. And to take the side of a single member of the same siblings, as sometimes happens, reduce the overall note given in death. Detailed explanation.

Expected Reforms

So the grant allowance should be increased from 100,000 euros per donor and 150,000 euros per child. And, logically, the same would apply to inheritance. Nothing was said, however, about the duration of restructuring this allowance, even if it should have been 15 years to avoid a very sharp fall in tax revenue. But 10 years (effective before August 17, 2012), or even up to 6 years (this time the deadline has been applied before July 31, 2011), will obviously further reduce the bill. “Parents who have already donated for less than 15 years will be just as concerned: they will benefit from the remaining 50,000 euros tax-free donations, the difference between the old ceiling and the new one”, underlined Marion Calmet, Heritage Engineer at SG Private Banking. .

Note: The possibility of a grant, up to 31,865 euros per 15 years, should remain in force. However, this only applies if the child is an adult and the donor is not over 80 years of age. Overall, so it would be 181,865 euros that a parent can send to their child every 15 years. And for a couple with two children a total of 727,460 euros.

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How to treat all beneficiaries fairly

This new allowance will reduce the bill significantly for early transfers, evenly granted among children. As our table shows, to divide between two children established for a tradition of 900,000 euros (and not taking the opportunity to pay 31,865 euros), the note will already be reduced, at the time of death, by 10,000 euros per child, even if the donor is not ready Does.

But if the parents knew how to estimate his inheritance, at least 30 years before his death by agreeing to two joint grants, the overall score would be deleted. In contrast to the tax of more than 28,000 euros per beneficiary under the current regime. It must be said that with the new allowance, it is a growing supplement to the grant of 150,000 euros which will be sent in three installments without tax. The interest in doing it in the first place, and the interest in passing it in one’s lifetime, will be so strong.

Attention, This tax consideration would not prevent a dispute if, at your death, the fate of the recipients of the equal grant was different. All donations made must actually be reported to the estate for their current value at the time of death. So that a child who got an apartment, the value of which was appreciated, would have to compensate a brother or sister who at that time got a stock market portfolio of equivalent value, but then who would underestimate. The risk, then, will affect the hereditary reserve of this child.

If it is still possible to ask the children to relinquish any subsequent “reduction action” before the notary, the best thing to do is to proceed with the gift-sharing, again in front of the notary. This will definitely make it possible to freeze the price of the products displayed in the document, whatever their next change.

Multiple variations are possible, such as joint donations, or donations shared with the Euphrates Reserve. If it does not need to be egalitarian, it also has the advantage of allowing the restoration of previous bonuses (a split fee of 2.5% will then be paid). The applicable tax deduction is the same as a general grant. Expected additional costs are notary fees, on a sliding scale, amounting to about 1% for products valued at more than 60,000 euros.

How about favoring a special beneficiary?

As our table shows, the multiplier effect of the new allowance will also be effective if you want your children to be biased towards one or the other, to the detriment of one or more. To still pass on a legacy of 900,000 euros, the gracious child would thus be able to see his tax note melt by 10,000 euros, whether the inheritance was expected, through two donations in the donor’s lifetime, or not. A child who does not receive special benefits will at least be satisfied with a significant reduction in his or her tax bill, 10,000 euros if nothing is expected, and about 20,000 euros if it is prepared.

Attention However, to calculate the amount of grant or inheritance correctly. “The risk, otherwise, is to start a hereditary reserve of other children who may claim their due at the time of inheritance,” recalls Benoit Birchebru, director of Nortier Heritage Engineering. But don’t hesitate to use the available part, this part of the tradition that you can dispose of freely. This is not trivial, since it reaches one-third in the presence of two children, as in our example, and still one-fourth for three children and beyond. The total share of your wealth that the same child will be able to get without wasting others will be 66% if the family has two children, and even 50% if he has three.

This distribution can be done by will, obviously at the time of death. But, most of the time, it is early on that you want to help one of your children, for their education or early in their career. In this case, it will be necessary to give the inheritance excluding the inheritance during his lifetime. It can even be made irrevocable, if it is specified before a notary.


(1) Marie, the two children have a total wealth of 900,000 euros. She wants to treat her two children fairly. In the case where he was expected for his inheritance, he granted them the same grant twice, optimizing tax deductions (100,000 euros without reform, 150,000 euros if reform is adopted), with a 15-year tax reminder period. So she does it early, if possible, before her 50th birthday.
(2) Marie, with two children, has total assets of 900,000 euros. He wants to take the side of one of his children, but does not affect the hereditary reserves of the second (one-third of the estate assets). In the event that he expected his inheritance, he gave them a grant twice, optimizing the tax deduction (100,000 euros before the reform, 150,000 euros if the reform was adopted) with a tax reminder period of 15 years. So he did it as soon as possible before his 50th birthday.
(3) Mary made a will stating that she wished to inherit the disposable part of her paternity at the time of inheritance for her only child.
(4) Mary donates out of inheritance to her first child.

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