You wish to bequeath your property to your descendants, children or grandchildren. Control your succession with complete peace of mind with the various solutions available to you. Find out how to transmit your property to your heirs while benefiting from favorable taxation.
Inheritance during his lifetime, the donation
The donation consists of donate real estate to his descendants. For a real estate donation, the presence of a notary is revealed obligatory. Namely, a donation is irrevocable. It can be exempt from tax if the amount is less than 100,000 euros per parent and per child every fifteen years. Sum reduced to 31,865 euros when it comes to a donation to his grandchildren.
Donation-sharing is recommended when the real estate heritage is important. Unlike a simple donation, it fixes the amount of the sums given at the time of the operation. This makes it possible to avoid disputes between the different heirs.
Note, the notarized donation is subject to taxation. The notary takes care of the formalities relating to the tax declaration. Notary fees and taxes represent a significant cost. However, the amount turns out to be decreasing according to the value of the real estate. The scale is established by the administration.
Usufruct and bare ownership
As owner, you have the possibility of transmitting separately the usufruct and the bare ownership of your property. With the gift of usufruct, remain the owner of your property while granting its use to your children. On the other hand, bare ownership consists in transmitting the good while continuing to enjoy it. It is about the dismemberment of a good. This can be temporary or end on the death of the bare owner or the usufructuary. The property then reverts to the survivor at no cost.
In the event of a donation of an apartment or house for rent, you can continue to receive rents. On the other hand, housing costs fall as much on the usufructuary (current maintenance) as on the bare owner (major repairs). The usufructuary must also pay the co-ownership charges, insurance, property taxes as well as the ISF. If the donor wishes to cover these costs, he must notify this in the notarial deed.
The family real estate civil society
The SCI represents a interesting solution for owners with significant real estate assets or large families. By opting for the SCI, you separate the value of the assets into shares. Its operation remains very flexible, provided that the articles of association are well drafted by a professional, notary or lawyer. The SCI allows exactly the same allowance as in the case of a donation.
How to take advantage of favorable taxation?
The tax allowances make it possible to considerably reduce the cost of donation rights. To take advantage of the absence of taxation, you have to pass on to your children all up to 100,000 euros every fifteen years. Beyond this amount, the tax scale varies between 5 to 45% depending on the price of the property.
Before bequeathing your primary residence, think carefully. This is a final decision and can lead to the impoverishment of its donor. If one day, you need to sell to repay debts, your child beneficiary will have to give his consent.