How to properly prepare for your succession?

When we reach a certain age, the transmission of the heritage that we have built throughout our lives becomes a real concern. This is the reason why it is important to prepare your succession as soon as possible, and to think about sheltering your loved ones through life insurance.

The importance of organizing your succession

Preparing for his succession is an excellent initiative. Not only will this allow you to distribute your property among your heirs according to your wishes, but also to define the rights of your spouse if you wish, or even to allow a person who is dear to you to benefit from part of your inheritance.

In the event that no heir is appointed, the inheritance rules will be applied automatically. Be aware, however, that the amount of inheritance tax can severely disadvantage your heirs.

To overcome this, there is different solutions to significantly reduce inheritance tax. This is particularly the case with the subscription to life insurance. If you choose this solution, find the best life insurance on the net and compare to find the best deal. Your loved ones will not suffer significant financial losses when the time comes.

What solutions to choose to escape a high tax rate?

To avoid high inheritance taxes, several solutions are available to you, including:

  • the subscription to one or more life insurance contracts,
  • the drafting of a will,
  • the donation,
  • dismemberment of property, etc.

Life insurance is an excellent way to deal with the transmission of wealth, apart from its advantages in terms of valuing your savings, security or taxation. Indeed, it is advantageous when it comes to inheritance tax.

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Life Insurance Tax Rate

The law, or rather the Insurance Code, stipulates that life insurance does not come within the framework of inheritance. To this end, the capital or the annuity that must be paid to the beneficiaries at the time of the subscriber’s death is not part of the inheritance tax. It comes only to the beneficiary as indicated in the contract and not to the heirs.

Note, however, that the beneficiary of a life insurance contract is freely designated by the insured. It can be a family member or a relative, unrelated to any relationship. The insured no longer has the right to go back or make changes once the beneficiary (s) have accepted the terms of the contract.

In the event that you have not designated a beneficiary for your life insurance contract, the capital will be allocated to the succession and shared between your heirs by a notary, according to the inheritance rules, and it will necessarily be subject to tax. of succession.

If you want opt for donation, know that it is also an excellent way to prepare for your succession. By definition, it is an act by which a person bequeaths his property for free and during his lifetime to another individual. There is what is called « donation-sharing », which allows a person to share among his heirs all or part of his heritage, during his lifetime.

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