Succession: why opt for donations?

The theme of inheritance tax, gift tax had some success during the presidential campaign, pushing all candidates to position themselves on the subject. Since the election, record inflation and the theme of purchasing power as well as energy-related fears have taken center stage, temporarily obliterating the debate on the reform of inheritance rights. Find out in this article everything you need to know about gift tax.

What about the law today? Why is a donation a privileged means of transmitting one’s assets sheltered from taxation? What taxes apply and what changes could occur soon?

A way to transmit your assets sheltered from taxation

Inheritance tax can be high. It depends on both the degree of relationship between the deceased and the beneficiary as well as the amount of the sums affected.

Thus, gift / inheritance tax can reach a maximum of 60% of the amount transmitted depending on the degree of kinship. And, in direct line (parent to child) the amounts going beyond 1,805,677 are taxed at 45%.

These high rates should encourage the French to prepare their inheritance by using the available allowances which can make it possible to erase at least part of the inheritance costs. It must be borne in mind that France is certainly one of the countries in the world which taxes inheritance the most, but French legislation also offers individuals many means of lowering the bill for the tax administration, or even erase altogether, thanks to the many niches and mechanisms linked to donations.

Concretely, how to do it? This involves giving his heirs part of his capital during his lifetime, ideally corresponding to the reductions in force, in order to reduce the capital remaining to be transmitted at the time of death.

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