What is a donation?
The donation consists of transmitting part of one's heritage during one's lifetime. The beneficiary or beneficiaries, called donees, thus inherit the ownership of the property (s) of the person who makes the donation (the donor). The donation is an act that may concern the transfer of money, real estate (house, apartment, commercial premises) or furniture such as furniture, a vehicle or a work of art. French law stipulates that the donor must be at least 16 years old, be in possession of all his intellectual faculties and have the legal capacity to transmit his property. This act is generally performed by a notary (notarial deed) when the property is numerous and / or their significant value, or by a simple declaration.
Donation and allowances
An allowance is a tax benefit, a reduction to the fixed amount or expressed as a percentage calculated on the basis of the tax base. It applies in particular to the housing tax, inheritance tax and gift tax. In the case of a gift, the allowance varies according to the relationship of kinship between the donor and the donee. It ranges from € 7,967 if the beneficiary is a niece or a nephew, to € 100,000 if the beneficiary is a child or an ascendant (mother / father, grandmother / grandfather, great-grandmother / back- grandfather…). The deduction is € 31,865 if the donee is a grandchild, € 5,310 for a grandchild, € 80,724 for a spouse or a PACS partner, of 15,932 € for a sister or a brother. An additional allowance of € 159,325 is applicable and can be combined with the other allowances mentioned if the beneficiary has a disability.
If the value of the goods transmitted is greater than the allowance, the difference is taxed. For example, if the donee passes a house to a son whose value is estimated at € 150,000, the tax will be calculated on the basis of € 50,000 (150,000 - 100,000). The tax rate also varies according to the relationship. It is usually between 5% and 45%, but can be up to 60% of the surplus.
The different types of donation
This type of donation enables the donee to transmit part or all of his assets to his heirs during his lifetime. To be formalized, the donation-sharing must necessarily be entrusted to a notary.
Donation between spouses
This form of donation is also sometimes called donation to the last living. This mechanism aims to increase the share of inheritance that automatically returns to the spouse in the event of death. The share that the donor can give to his spouse depends on the existence or not of other heirs. It is limited if the couple or donor has children and other descendants (grandchildren, great-grandchildren).
Donation to children
Children are the main recipients of donations. They are also the main heirs in case of death, when the deceased leaves behind a real estate or real estate patrimony. This type of donation is part of direct online donations, such as those made for the benefit of grandchildren and ascendants.
Unlike the notarial deed, manual donation does not require the intervention of a notary to be performed. It is sufficient to inform the tax authorities by completing, signing and dating the form "Declaration of manual donations and sums of money" (2735). If the donation exceeds € 15,000, the beneficiary must complete the form "Revelation of a donation of more than € 15,000" (2734). The manual donation can be done in the form of money, check, car, jewelry, objects of art ... Are excluded from this form of donation the real estate.
The universal donation consists in transmitting all or part of its assets to the donee of its choice by imposing certain conditions.
Real estate donation
We are talking about real estate donation when a person transmits a real estate property of which he is the owner.
His name is confusing. Disguised donation is an act that is completely legal, consensual and transparent, and the person who makes it has little intention of fooling the recipient. His name comes from the possibility of making the donation look like a sale. It can be a lease, a sale or an acknowledgment of debt. To be validated, the disguised donation must fully respect the conditions of lease or sale. This type of donation is not possible between cohabitants or if it aims to hide an estate advantage.
Donation to usufruct
We are talking about a gift with usufruct reserve when the latter concerns only the bare ownership of a property. The donee transfers part of its assets but retains its usufruct, in other words the right to use and benefit from it. This type of transaction has a great tax advantage because the tax on the gift is calculated only on the basis of the value of bare ownership.
The simple donation is a kind of gift made for example on the occasion of a birthday, a birth, a wedding or another personal event. The value of the donation is limited. Its ceiling depends on the donor's resources. The higher the income, the higher the value of the simple donation. If the simple donation does not fulfill the pre-established criteria, it can become a manual donation and be taxed.