Your estate may not costing nothing to your heirs

The estate tax is hated by the French. Yet, few of inheritances between parents and children are taxed.

Recently, Stanislas Guerini, general delegate of The Republic on (LREM), indicated a desire to open a reflection on the taxation of the estate. A real red rag, as the transfer tax is hated by the French. Yet, "nearly 75% of estates do not give rise to taxation. In contrast, 10 % of them provide a large part of the rights enjoyed by the State", swatch Nathalie Couzigou-Suhas, notary in Paris. It is, most of the time, of transmission within the families to a single child or without child.

Understanding tax rules

The property passed through a donation or succession, of a parent to a child, receive an allowance of € 100 000. "The allowance is per person who sends to each person who receives," says Gregory Mitry, notary in Nantes.

The child of a couple can therefore receive up to € 200 000 inheritance without being taxed. Beyond that, the tax is progressive, from 5 to 45 %. "The higher rate only applies on the share of each heir above 1 805 677 €" says Gregory Mitry. Useful precision : these rights of succession are only to set for children - spouses are exempt. "The partners of Pacs also, but, for they will inherit, it is necessary to write a will in their favour," recalls Nathalie Couzigou-Suhas.

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Anticipate his succession by giving

To reduce the number of future rights to your estate, you need to anticipate. "When parents have made arrangements for their living, the agreement is easier and, in addition, the rights of succession are lightweight," notes Nathalie Couzigou-Suhas.

With donations, you will enjoy the same tax deductions as those planned for the estates. The approach is simple : just declare the amount to the tax department, using a form Cerfa. If you would gratify many children, it is advisable to go to a notary to prepare a deed of gift. The latter is mandatory if there is a real estate property.

As the allowance of 100 000 € is reconstituted at the end of fifteen years, your heirs will benefit several times of this franchise taxation on the donations, and then on the estate.

First possibility : give money to your heirs, provided they pass before your 80 years are in cash (cheque, transfer, etc.) to major children. You will enjoy a boost in additional tax. "No duty is owed up to 31 865 €, this allowance in addition to one of € 100,000," explains Nathalie Couzigou-Suhas.

If you do not want to bequeath your entire estate, you can opt for a donation of dismemberment of property. You pass the bare ownership of an apartment, rental property or a portfolio of titles to your children, and keep the usufruct, to continue receiving the rents or dividends in particular. Advantage, "the valuation of the bare ownership is lower than that of the full property," argues Gregory Mitry. The schedule depends on the age of the usufructuary at the time of the donation. If it is between 61 and 70 years, the naked-property is valued at 60 % of the full ownership, if the donation is between 71 and 80 years of age, to 70 %. The gift tax is calculated on a reduced basis.

>> Practice : Download our guide to council for défiscaliser by investing in real estate

Optimize transmission

After your death, the life insurance has a tax lean, with reductions in individuals for succession," points out Bernard by The Arm, chairman of the executive board of Suravenir. If you've invested in a contract before 70 years of age, each beneficiary will receive up to 152 500 euros, and all contracts combined, without paying any rights. Beyond that, it will pay 20 % up to € 700,000, and then 31,25 % then. If you have saved on life insurance, after 70 years, a deduction unique 30-500 € applies to all your contracts and beneficiaries. Beyond this amount, the amounts are taxed in the schedule of rights of succession, depending on your relationship with your beneficiary. In this latter case, only the payments are taxed, the capital gains earned is fully exempt.

key figures

• 100 000 € : tax allowance for a transmission between a parent and a child. It is reconstituted every 15 years.

• 152 500 € : abatement beneficiary to a transmission via a life insurance policy (if the savings has been paid over before the age of 70.

• 0 % : tax rate on an estate between a spouse married or a partner in a civil partnership (with a will).

• 45 % : rate of maximum taxation in the direct line, beyond 1 805 677 € transmitted.

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