Anticipate the transfer of your real estate during your lifetime, you allow your heirs to build up an estate at a lower tax cost. Moreover, it is a more comfortable solution since you can avoid possible conflicts on the day of your succession.
There are several ways to pass it on, each one responding to a particular situation and need. Answers to your questions in this article.
Donations in full ownership
Donation remains the best solution to avoid conflicts between heirs. There are two types of donations:
- the donation in advance of inheritance shares: allows to maintain equality between the heirs. It is also known as a shared donation.
- the donation without inheritance shares: this type of inheritance allows one heir to benefit more than another or to transmit his or her assets to someone who is not a direct heir.
In general, the first beneficiaries are children, grandchildren, spouses or other close family members. The main consequence of a donation is to reduce the value of the donor's capital during his or her lifetime. Thus, when the donor dies, the heirs will only have to bear a reduced cost.
Taxation of donations
By making a donation during your lifetime, you can benefit from tax advantages. There are deductions depending on the relationship with the donee:
- for children, you can take advantage of an allowance of up to €100,000 which can be applied to one or more instalments every 15 years.
- for grandchildren, a deduction of €31,865 applies.
- for great-grandchildren, it is 5 310 €.
These allowances can be accumulated. For example, a child can receive €200 000 from his parents (€100 000 x 2) and €127 460 from his grandparents (31 865 x 4) every 15 years.
Donations in dismemberment
Dismemberment of ownership consists of separating the full ownership of a property into bare ownership or usufruct. Often used in the family context, it allows the property to be bequeathed to an heir while retaining the right to use the property or to collect the rent if it is a rental investment.
The dismembered rights are totally independent. However the usufructuary and the bare owner can in no case sell the dismembered property alone, both parties must give their agreement.
On the death of the usufructuary (the parent), the dismemberment ends. The bare owner (the heir) then becomes the full owner of the property and has no inheritance tax to pay. He or she can then occupy the property, sell it or rent it out.
At the time of the donation of dismemberment, the inheritance tax is lower because it is calculated on the bare ownership and not on the total value of the property. The younger the donor is at the time of the donation, the lower the value of the bare ownership. .
Think about real estate property companies (SCI)
The creation of an SCI makes it possible to optimise donations and facilitate the management of a property, while at the same time presenting patrimonial and fiscal interests. It is, in fact, easier to share shares than a property. The distribution will therefore be more precise.
Another undeniable advantage of creating a SCI to pass on your assets is that it avoids situations of indivision, which can lead to blockages when inheriting or reselling the property.
