How to pass on one’s heritage?

The transmission of a heritage is important in order to ensure the future of your children. There are various solutions and it can also be done during your lifetime. However, it is necessary to be aware that new rules can affect decisions. It is therefore important to be aware of them so that you do not make the wrong choice.

Transmission of an estate: donation between members of the same family

In terms of inheritance, the donation can be real estate/movable property, a sum of money. With the new rules, the donation, being a definitive act, has the possibility to benefit from a tax exemption in the family context. Thus, parents (under the age of 80) can each pass on a donation of up to 100,000 euros to each of their children every 15 years. If there has been no previous donation, then two parents with three children can make a donation of up to 600,000 euros without having to pay tax.

Shared donations to prevent conflicts

In the case of several children, it is preferable to proceed to a transmission of an estate with the split-donation solution. This consists in fixing the sums granted at the time of the transaction. Sometimes successors may be in conflict with the simple donation since it can be rebalanced according to the new value of the assets for each patrimony when the donor has died. Indeed, children may well accept and receive assets of the same value but they will use them in different ways and then reap equally different results. If it is a simple donation, then each share may be revalued at the time of the inheritance. The advantage of a shared gift is that there is no revaluation so no conflict will occur. The value of the property transferred is clearly specified on the day of signature. It is therefore the best solution to take if one wants to stabilize family relations.

ICS for property management

The transmission of a built heritage is much simpler with the SCI or Société Civile Immobilière. It is an option that is really interesting if the parents have several children. It is created in this case in order to pool one or more properties. Everything will then be shared, whether profits or losses. The company will be managed by a person who will be designated in the articles of association. In this way, the SCI operates in a flexible manner while adapting to any situation. For this solution, it is advisable to seek the services of a lawyer in order to be assisted throughout the project.    

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