The reserve clause in deeds of gift: for whom and in what situations?
The donation is a serious act for the donor, because it consists in transmitting all or part of the rights of a good that he holds. This act therefore assumes all its importance in view of the immediate and irrevocable counting that it operates.
The legal definition of donation is impoverishment. There is no gift if there is no impoverishment. It is for this reason that notaries are generally very reluctant to make deeds of gift, because the donor must first be protected. And in most cases, the first objective of customers who inquire is above all not to pay taxes. They lose sight of their comfort in life.
In the donation, there is the desire to benefit his or her child(ren) and avoid tax.
And in deeds of gift, there are usual clauses which are not mandatory but which are there precisely to protect the donor.
First thing to do to find out about the benefits of a donation: go see your notary, and take stock of your assets.
Each situation is different and depending on your assets, a donation may be unnecessary.
Concretely, with the example of a couple with two children: each parent can pass on €100,000 tax-free to their children.
So if I have one parent with two children, that’s already 200,000, the other parent 200,000.
So if you have assets that do not exceed €400,000, there is no need to make a donation.
Another example is that of Suzanne, 86, widow and owner of an apartment; she wonders about the merits of making a donation to her 2 children right now.
Good or bad idea?
To listen to Maître Debusigne’s response, click here:
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