Children’s donation: up to €263,730 exempted every 15 years

Blood ties are sacred in France. The children therefore enjoy preferential treatment from the tax authorities: a premium of €100,000 on assets inherited by each parent, and donations of up to €263,730 during their lifetime, for 15 years, without any tax. As for the children of the partner (wife, association or cohabitant) they do not deserve anything because they are not the heirs of the deceased. Devices such as the “joint” donation portion and life insurance nevertheless allow the head of the household not to forget anyone, while minimizing the fees to be paid.

one donation

The amount of tax exemption granted is renewable every 15 years. Nothing prevents parents from making a gift for their child during his lifetime. But for the process to be tax-exempt, the donation amount must not exceed €100,000. Thus each child can receive €100,000 from one parent and €100,000 from the other parent, all without paying taxes. The process is renewable every 15 years. However, many types of simple donations coexist. There is an ‘advance inheritance’ donation, intended to help a child on an ad hoc basis but large enough (buying a studio for example) so that, in the interest of fairness to other heirs, it comes as a deduction from his future share of the inheritance.

A donation “outside the inheritance”, on the contrary, is given to the child in addition to his share of the inheritance. So it is only allowed if its amount does not exceed the “disposable share” of the giver, in other words the part of his assets which he can dispose of freely. The only difficulty, especially if the donation relates to a commodity and not an amount of money, lies in estimating its value, because between the day the donation was made and the day the succession was opened, rises or falls in value may appear.

The last type of donation is present, ‘present of use’. It has no tax or real estate implications. There are no taxes to pay, property rights between direct descendants should not be respected, but with two conditions: the donation must be related to an exceptional event (birthday, wedding, passing an exam, etc.) and not be disproportionate to the standard of living of individuals. The donor, that is, according to recent case law, not to exceed each year 2% of the total value of his heritage.

family donation

Money granted excluding taxes if the parent is under 80 and the child is an adult. An exempt donation of €100,000 given to a child can sometimes be supplemented by a “family gift with money” of €31,865, also without any tax. It is sufficient that the parent is under 80 years old on the date of donation and the child is at least 18 years old. A second parent can do the same, under the same conditions. In return, by combining classic donations of €100,000 per parent with family donations of money (which can be given in cash, check or by transfer), each child can therefore receive up to €263,730, every 15 years, without any Fees to be paid.

Donation sharing

It avoids conflicts between children while giving tax advantages. This form of donation consists of sharing all or part of a parent’s assets between their children. It also benefits from a bonus of 100,000 euros per child. Par rapport à une donation simple, son principal avantage est que les biens attribués aux enfants (à parts égales ou inégales dès lors que chacun reçoit au moins la réserve à laquelle il a droit) n’ont pas ure de à lê ré relay. No dispute possible.

However, as with a simple donation, a joint donation can sometimes be cancelled. Thus, the child’s arrival at the donor’s home will result in its cancellation if that child requests it. Part of the reasons for cancellation is the non-implementation of the fees listed in the act (in exchange for the donation). 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 behaved very badly towards his parents.

joint donation

Assistance provided to children from the first bed. When the spouses are married and one of them has children from the first marriage, the latter is punished in comparison to the spouses’ children, the only ones who inherit from both parents. To restore justice, the common donation portion allows spouses to distribute their common property among all children, regardless of the union to which they belong.

Advantage for those of the first bed: They benefit from a reduction of €100,000 on the inheritance passed to each of them (instead of tax from the first euro) and from a reduction in the volume of donations between parents and children (instead of the 60% tax between children and stepparents). Obviously, it will be necessary to take care not to deprive other children of their legal inheritance.

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life insurance

A large tax bonus for all payments made before the age of 70. In order to give his children a good capital, life insurance remains a tool with tremendous efficiency: they often will not have any taxes to pay. Respecting the financial balance between siblings is not even mandatory. For example, you can allocate €90,000 each to your daughter, the two students born from your current marriage, and €15,000 just to your eldest son, who is from a first union and has been quite successful in his profession. So each according to his needs.

The only limit to respect is not to encroach on each of his children’s legal quota (25% of your estate for each of your three children), which could encourage the dissatisfied to ask the court to return contracts in succession. Nothing beats life insurance to satisfy your partner’s children. Indeed, the beneficiaries of these contracts may not have a family relationship with the insured, and this is precisely the case for those children who do not enjoy any inheritance benefits.

As stipulated by law, the only limitation for an insured who wants to benefit as much as possible from the golden tax investment is to finance his contract before he reaches the age of seventy. Therefore, all payments made will be transferred tax-free to the extent 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 significant assets, your accidental disappearance could cause serious financial problems for your family, especially for your children if they are still young. A good way to guarantee their future is to conclude a death contract: in exchange for contributions paid, the insurer undertakes, in the event of death (and sometimes disability) occurring during the covered period – say 10 or 20 years – to pay them the planned capital, excluding taxes.

For blogging: In addition to the guaranteed amounts, the contributions to be paid depend on your state of health (tests may be required), but also on your age (read the selection table below).

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

capital

(1) The two types of donation can be combined. (2) It is achieved by every grandfather for every grandson. (3) Furniture, cars, jewelry, real estate… (4) Cash, check or money order.

To help his grandchildren exempt from taxes, there is life insurance. But we can also give them donations of goods or money: everyone is entitled to €31,865 in bonuses every 15 years. If the four grandparents join, the amount can rise to €127,460 (4 x €31,865), or even double if each grandparent is under 80 and is given, in addition, a “family gift of money” (cash, check or -transfer). ), also limited to €31,865. The only condition for this doubling: that the grandson has reached the legal age.

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