Everyone is free to dispose of their goods and possessions as they see fit. Provided you do not encroach on the hereditary reserve dedicated to your descendants, you can donate part of your estate while you are alive to your children, grandchildren, cousins or even to an association. However, the tax authorities can claim their share.
Undeclared gifts
The legislation authorizes first of all to make manual donations to the people and structures of its choice, on the occasion of family events, such as a birthday, a marriage, a birth or the successful completion of a competition. This is called a "custom of the present". However, its particularity is that it does not need to be declared to the taxman and therefore escapes all taxation. Be careful not to be too generous. The law requires that the value of this gift is reasonable, in other words proportionate to the income of the person offering it. Although this is a case-by-case interpretation, the case law considers that the amount of a customary present should not exceed 2% of the donor's estate nor 2.5% of his annual income.
Apart from a specific event, the sums and items that are well transmitted from hand to hand are subject to "manual donation" and must be declared to the administration using a specific form depending on the amount granted (less than or more than 15,000 euros). There will be no need to pay if the value is moderate. Otherwise, this act of generosity may be reclassified as a classic donation and give rise to the payment of the related taxes.
Beneficial relatives
When it comes to transmitting real estate or a very large sum of money, the passage before a public officer is inevitable. This notarized donation is then subject to “donation rights”. This tax is calculated according to the value of the donation and must be paid by the beneficiary. But, good news, the legislation provides for significant reductions for members of the same family. Subject to respecting these ceilings, one can indeed grant a donation to the same person every fifteen years while benefiting from a total exemption from taxes on this operation.
The envelope can reach 80,724 euros between spouses or partners of a PACS (cohabiting partners are excluded) and up to 100,000 euros for each of their children. The other generations are also not forgotten since the law provides for an allowance of 31,865 euros for the benefit of beneficiary grandchildren and 5,310 euros for great-grandchildren. To benefit the rest of the family without having to pay taxes, you will have to respect a maximum limit of 15,932 euros for brothers and sisters and 7,967 euros for nephews and nieces.
For those who wish to be more generous, donation rights will be applied to the part that remains after the allowance. However, they can quickly climb from 5 to 55% depending on the amount and the family relationship.
Note: if the recipient of his donation is disabled, the law applies a specific allowance of 159,325 euros which can be combined with the others.
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