In a context of budget cuts that make taxation uncertain, quickly making a donation that is already being considered could be a good strategy. In the event that last-minute arbitrations arise and tighten the rules… “We have just experienced seven years of real fiscal stability but, since June, with the dissolution of the National Assembly and the appointment of a new Prime Minister, the tone has changed. We’re seeing an acceleration in giving, and donors want to make sure benefit from current conditions”says Sophie Nouy, director of the Cyrus group’s heritage knowledge center.
The current rules regarding donations are as follows: a parent can donate up to 100,000 euros to their child every fifteen years tax-free. For a grandfather who rewards his grandson, this threshold is 31,865 euros. That is, a couple can donate 200,000 euros to each child tax-free and two grandparents can transfer 63,730 euros to each grandchild.
These provisions can be combined with another, inspired by the formerly called “Sarkozy”, which only refers to sums of money, that is, 31,865 euros tax-free, and which applies to a donor (the giver) of 80 years of age. . maximum for the benefit of an adult descendant.
“If these rules changed overnight and the donation was completed, they would not be retroactive”indicates Arlette Darmon, notary at the Monassier & Associés firm in Paris. “Other reasons that encourage some to organize the transmission of their assets through a donation during their lifetimecontinue, the fear of a possible increase in inheritance taxes and the desire to avoid tensions between children at the time of death. »
Why might it be in the interest of parents to gradually transfer part of their assets to new generations? “This is an opportunity to permanently remove real estate or personal property from your estate. This allows this wealth to circulate and benefit young people at the precise moment they need liquidity to finance a project, without waiting, not only at the moment of death.”indicates Mme Nouy.
Progressive taxation
The other side of the coin: an elder runs the risk of being too generous by giving too much, too soon. “Once the law is signed, it is irreversible. It is impossible to go back, unless all concerned agree.”insists Eric Meiller, notary of Saint-Chamond (Loire). By giving and thus becoming poorer, the donor may later find himself in a difficult financial situation.
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