Passing your property on to your child
Thanks to these options, gifting is a useful means of transferring a property (or properties) to your children while you are still living. The situation explained.
Gifting the whole property
It is possible to transfer a property in full to your children. Under the laws on giving, once every 15 years the law permits each parent to give the equivalent of €100,000 to each child. Thus a couple can give a beautiful studio in Paris worth €200,000 (€100,000 x 2) to their offspring without paying a euro in taxes.
Beware: over and above this amount, charges become payable to the taxman.
Note: do not forget about notary’s fees for the drafting of the contract for the gift and the official transfer of the property.
Giving a property in stages (donation en démembrement)
Buying or gifting a property in stages is advantageous at the moment it is passed on to your heirs. By way of reminder, this way of owning property most notably consists of separating the use of the property (its enjoyment and the receipt of any revenue it generates) – generally retained by the parents – and “stripped back” ownership of the property, given to the children. On the death of the usufructuary, full ownership reverts to the child and the latter is not obliged to pay inheritance or property transfer taxes.
Note: gifting is an irrevocable and irreversible legal act. It is important not to be “too” generous and not to give too early in order to avoid creating financial strain for yourself.