Among the mechanisms for transmitting real estate assets, setting up a family SCI is often recommended by specialists. But how does this contract work? What are the real advantages? Insights and recommendations from our experts.
Family SCI: What is that ?
As its name suggests, a family SCI is a real estate company formed between several partners belonging to the same family. The latter must therefore all have a family bond or alliance. The main objective of such an association is to manage and then pass on real estate belonging to the common family patrimony.
What are the operating rules of a family SCI?
A family SCI works essentially like a classic SCI. Concretely, each partner contributes goods or money in order to create real estate assets. This is managed by mutual agreement by the various partners, under the control of a manager.
Each partner receives, in return, shares in the assets thus created (houses, buildings, apartments, etc.). These shares naturally give the right to an annuity, and can be freely transferred by their owners. In the event of death, the shares are transmitted to the beneficiaries of the partner, so as to preserve the heritage within the family over several generations.
Taking into account these different elements, the constitution of a family SCI represents an interesting solution for the parents who wish to avoid joint possession within the framework of their inheritance. For the necessary procedures, contact a notary in Normandy or in your region.
What are the advantages of a family SCI in the context of an inheritance?
They can be summarized in a few essential points:
The conservation and development of the family’s real estate heritage
In the context of a classic succession, each heir is free to dispose of his share of the real estate inheritance bequeathed as he wishes. There are then risks of transfer and rapid exit of the goods, of the family patrimony. With a family SCI, joint ownership is impossible. Family assets are all managed in a uniform manner.
Endowed with the necessary powers by the statutes of the SCI, the appointed manager can in particular take the decisions necessary for the proper functioning of a rental property, for example. Thus, if major work or a change of the energy supplier is necessary, the latter has a free hand to proceed, after using a gas offer comparator to make the best choice.
A reduction in inheritance costs
In the context of a succession, the transmission of the shares of a family Immovable Civil Company is fiscally less costly than a direct transfer of real estate. Various mechanisms also allow parents to significantly reduce the tax cost linked to their inheritance thanks to this form of contract. Do not hesitate to ask your notary for advice in this context.
Avoid conflicts between heirs to the succession
Setting up a family real estate company during your lifetime is also a good way toorganize your succession as well as possible by distributing, according to your own common sense, the powers and rights to each of your heirs. Thanks to the shares, sharing is indeed simplified and you can, from the start, assign management powers to the heir of your choice. Of course, the ideal is that all this be done with the consensus of all the possible heirs.
Read also: How to create an SCI?