Inheritance: donation-partage and intergenerational donation
Donation - partage allows you to organize the sharing of your assets , during your lifetime. It can be granted for the benefit of one’s children, but also of grandchildren as part of an intergenerational donation-sharing
What is donation-partage?
The donation - partage is about passing on and distributing all or part of one’s property, during one’s lifetime. Therefore, it’s different compared to a will , the provisions come into effect only on the death of the person who is concerned. Therefore, a donation combined with partage, which cannot be questioned, at the opening of the succession.
It allows its beneficiaries to immediately receive a heritage (even if the donors can preserve using the property by reserving the usufruct for example). It is a must to approach a notary since the donation-partage must be established through notarial act.
What are the advantages of donation-partage?
Broadly speaking, donations have many tax advantages. Recent provisions in this area have boosted those families who wish to anticipate the early transmission of their heritage. Today, the deductions applicable on donations are renewed every 15 years 100,000€ (per child and per donor). Moreover, assets are valued on the day of donation and not on the day of death.
Last but not least, donation-partage, unlike classic donations or manual donations, preserves family harmony in the presence of several children.
Who can benefit from donation-partage?
Donation - partage is no longer just for children. A person who doesn’t have a child can, for example, anticipate the passing on of his property for the benefit of his presumptive heirs (heirs who collect the inheritance ): depending on the latter’s situation it could be the father, mother not to mention his brothers and sisters.
What is intergenerational donation partage?
It is possible to make a donation - partage for descendants of different generations and this involves children and grandchildren. We are talking about intergenerational donation-partage. To do so, it is required to obtain the agreement of all beneficiaries.
This donation-partage has significant tax advantages. It gives the right for each grandchild (adult or emancipated minor) to a specific allowance of 31,865€ * per grandparent, renewed every 15 years.
Beyond this amount, fees must be paid to the Public Treasury. Their amount is calculated in proportion to the amount given. This percentage varies from 5 to 45%. They are calculated in the same way as inheritance tax.
For example, if grandparents have three grandchildren, without paying gift tax they can give them up to 189,370€:
- for the grandfather: 31865 €* x 3 grandchildren = 95595 €;
- for the grandmother: 31865 €* x 3 grandchildren = 95595 €.
This reduction of 31,865 € * can be combined with the one provided for disabled people and with the one provided in the event of a donation of a sum of money when the donor is under 80 years of age. It also applies to donations made to great-grandchildren when the latter represent their predeceased parent.
* Amounts are updated every year on January 1.