These are sometimes a little complicated notions. The question of bequeathing, of transmitting, to one’s descendants one’s heritage is known to all. Usufruct, transfer, legacy… RTL explains everything to you.
In France, the median wealth of the French is 188,000 euros. This means that there are as many French citizens who have a heritage higher than this figure, as French people who have a heritage lower than this same figure. According to INSEE figures from 2018, “the average net wealth of households, i.e. after deducting their private or professional loans, amounts to 239,900 euros“, indicate the specialists in statistics. And the expert of the Cercle des fiscalistes to indicate the existence of a “peak” at 400,000 euros for 50-60 year olds.
First, it is “preferable” to organize the transmission of one’s assets in advance, as confirmed by Philippe Bruneau, president of the Cercle des fiscalistes, at the microphone of RTL. “We used to say that it is better to organize things cold, rather than hot,” he judges. Indeed, the more the succession will be organized before your death, the less your family will feel like they have to go through this sometimes painful stage.
If you are starting to take an interest in your estate, some good reflexes are to be had. First, avoid giving all of your assets to your children. “The main residence must be excluded from the donation. Even by dismembering the property” and keeping the usufruct, judge Philippe Bruneau. Indeed, he believes that one can “at the end of his life” always need to sell his main residence: to finance an Ehpad, a life annuity. “For that, you have to have full ownership,” he recalls.
Life insurance and donation: two tools to reduce inheritance costs
Two other reasons plead in favor of an upstream preparation. “This allows for discussions between generations and to smooth things over”, points out Philippe Bruneau. In addition, the sooner your estate is put on paper, the less expensive it will be. “THE tax benefits disappear over time“, recalls the expert. Thus, it is interesting to start dealing with your questions from the age of 50.
For example, you can invest your financial assets in a life insurance support quite early, “before age 70”. “He will be totally exempt from inheritance tax”, within the limit of 152,500 euros per designated person. From the age of 70, the sums paid into a life insurance plan benefit from a lower reduction, 30,500 euros for the entire contract.
Other considerable advantages exist in terms of donation. Indeed, donations can be exempt from tax within the limit of 100,000 euros given every 15 years. But be careful, it should not be done at any time, or to anyone. “Beyond 80, it’s too late,” said the president of the Cercle des fiscalistes. Moreover, this allowance of 100,000 euros is only applicable to a parent-child donation and not a grandparent-child donation. “The decade of the fifties is a good time to think about your succession. The ideal is [d’y penser] before 70 years”, summarizes Philippe Bruneau.
