Succession: What is a donation with right of usufruct?
Donation has "the right of usufruct " when only the bare ownership of the property is given, and the donor retains the usufruct of the given property.
Donation with right of usufruct: definition and advantages
The prerogatives of the owner can be divided into two groups and therefore be exercised by two different people: on one hand the usufruct (right to use the property and receive the income) and on the other bare ownership (right to dispose of the property). This is about dismemberment of property. This device is often used for a donation .
For a detailed definition of what is usufruct: see the file "understanding usufruct".
This inheritance technique not only allows the donor to retain the enjoyment of the property (right to use it and receive the rents), but also to limit the transfer tax to be paid. Bare property corresponds to a fraction of the value of the entire property, depending on the age of the beneficiary, determined by a scale set by law.
On the death of the donor, the usufruct is extinct, in favor of the donors who then become complete owners, without taxation or any additional formality.