Questions - Answers : the transmission of heritage

How to transmit?

Does Planète Enfants & Développement pay transfer taxes if I make a bequest or donation to it?

NO. As a charitable association, our association is exempt from transfer duties.

I have children. Can I transmit my heritage to Planète Enfants & Développement?

YES, but you can't pass everything on. The law guarantees the transmission of a part of your estate to your closest heirs. This is called the reserve of inheritance. You can pass on to our association the part that exceeds this reserve, which is called the available portion.

Are my parents, siblings, nephews and nieces and cousins reserved heirs?

NO. Only your spouse, your children and grandchildren (if the children die) are reserved heirs. You are required by law to pass on a portion of your inheritance to them. On the other hand, you have no obligation towards your parents, brothers and sisters, nephews and nieces or cousins.

Can my heirs renounce part of their inheritance to the association?

YES. A reserving heir may, in advance, undertake not to question a gift made to an organization that encroaches on his share. This is called the "advance renunciation of the action in reduction" (RAAR).

What is the difference between a bequest and a donation?

The legacy, formalized by a will, is realized at the time of death. 

The donation takes effect at any time during the donor's lifetime.

Is it mandatory to use a notary when making a living donation?

NO and YES ! The recourse to a notary is only compulsory when the transferred property is said to be real estate (apartment, house, building, land...). For movable property of a certain value (e.g.: bank account, securities portfolio, ...), the recourse to a notary is advised to specify and formalize your intentions.

Can I keep the use of the property that is the subject of my donation? For example, can I continue to live in my apartment?

YES. Your donation can take different forms. You can organize the transmission of your heritage while preserving its use or the collection of income (rent, interest...). This is the donation with usufruct reserve.

Example : Mrs. Miller wants to donate her house to Planète Enfants & Développement. But she wants to live in it until her death. She makes a donation with usufruct reserve, which allows her to stay in the house and to benefit from a tax reduction.

The donation concerns the bare ownership of the property, worth €100,000.

100,000 x 66% = $66,000

Mrs. Meunier can reduce her income tax by 66 000€, up to a limit of 20% of taxable income. The fraction of the donations that did not benefit from the reduction in the year they were made can be carried forward for the next 5 years.

Note that all taxes and charges attached to the property remain at your expense, except for "major repairs".

Can I make a property available to the association on a temporary basis?

YES. It is the temporary donation of usufruct. You keep the property of your good but you propose the use or the collection of the fruits to the association (collection of incomes, rents, interests...). The property that is the object of the donation must contribute to the realization of the association's mission.

This type of donation must be the subject of a notarized deed and carried out for a minimum period of 3 years. At the end of this period, you can recover the full ownership or transfer it entirely and definitively.

Note: the value of the donation is not subject to tax.

I received an inheritance from a relative but I am not able to pay the inheritance tax (60%) and the taxes it generates. How do I proceed?

Vous pouvez réaliser un don sur succession à Planète Enfants & Développement, dans les 12 mois qui suivent le décès de votre proche.

For example, if you have inherited a house that represents a burden for you: by making a gift on inheritance, you will not have to take care of the sale of the house, to support the expenses while it is sold or will be exempted from a possible Tax on Real Estate Wealth.

Do I have to pay a fee when I make a donation?

YES and NO. You will have to pay notary fees (if it is an immovable property, a valuable movable property or simply if you wish to carry out a notarial act). Mortgage registration fees also apply if it is an immovable property.

Fees can be transferred to the organization.

I have no heirs (no spouse or children). What will happen to my property

If you have not made a will, the notary will have to look for your heirs by blood. Your estate will go first to your brothers and sisters. If you do not have any, it will go to your ascendants: parents, grandparents, great-grandparents. If none are still alive, the estate goes to your uncles, aunts, cousins. If there is no family, the estate goes to the State.

Designating a universal legatee and drawing up a will make it possible to organize, simplify and reduce the cost of the succession.

I have a spouse and/or children, but I want to share my assets with an association that I care about. Is this possible?

YES. As with the gift, you are required to respect the hereditary reserve if you have a spouse and children. But you can then distribute the available portion as you see fit.

Is it mandatory to write a will when you want to make a bequest to an organization like Planète Enfants & Développement?

YES. A will is mandatory when you wish to make a bequest to an association like ours. This document also allows you to specify all your wishes.

Does the will have to be made with a notary and what is its form?

The only requirement is that the will be written, dated and signed by the testator (the person who wishes to bequeath). It is not mandatory to make a will with a notary.

The holographic will is handwritten by the testator.

The authentic will is drawn up by a notary in front of two witnesses or another notary. Again, this form is not mandatory.

The most important thing is to clearly identify his first name, last name and address, as well as the name and address (head office) of the beneficiary (e.g.: Planète Enfants & Développement, 53 Boulevard de Charonne, 75011 Paris). If assets are bequeathed in particular, it is important to identify them precisely: an address and a lot for an apartment, the bank address and an account number for a bank account, ...

If you are writing several pages, it is advisable to number them. And don't forget to date and sign your will.

 

Example of a will:

"This is my last will and testament revoking all previous testamentary dispositions.

I, the undersigned Yvette Lechamp, residing in Annecy, 2 rue des Tableaux, institute as universal legatee of all my propertyThe association Planète Enfants & Développement is based in Paris, 53 Boulevard de Charonne.

Done in Annecy, on July 6, 2021. 

Signature

Is the will set in stone or can it be changed?

Your will can be changed at any time. To cancel your will, you write another one stating "This is my will revoking all previous wills".

In order not to lose it, you have the possibility to register it in the central file of last wills (FCDDV). This file lists all the wills delivered or drawn up by a notary.

Can I choose what I leave as I wish?

Of course. 

A universal bequest is one in which all of one's property is passed on to one or more persons or organizations.

A bequest is said to be universal when one leaves a portion of one's property or a category of property.

A specific bequest is one that refers to a specific asset.

The 3 forms of bequest can be combined.

Example of a will:

"This is my last will and testament revoking all previous testamentary dispositions.

I, the undersigned Yvette Lechamp, residing in Annecy, 2 rue des Tableaux, define the following provisions:

  • I leave to the association Planète Enfants & Développement whose seat is in Paris, 53 Boulevard de Charonne, the sum of 20 000€.
  • I leave to my friend Yolande Berte, wife Zina, domiciled in Annecy, 10 rue des Tableaux, my house located in La Baule, 3 rue des Pins, as well as the painting representing the house located above my bed.

Done in Annecy, on July 6, 2021. 

Signature

I have no spouse or children. I have heard that I can designate the association as my universal legatee, with the responsibility of delivering the particular legacies to my relatives. What are the advantages ?

By designating your relatives (except blood heirs) as legatees, they will have to pay inheritance tax of 60% (tax to the State).

Our association is exempt from inheritance tax. By designating us as universal legatee, you are making a strong gesture for the children and families we support, while maintaining your support for your loved ones.

 

Example:

Mrs. Rose is single and childless.

She can, if she wishes, leave her entire estate of 200,000€* to the charity of her choice, without being obliged to reserve a share for her nephews, nieces or cousins.

 

For the time being, she plans to leave all her belongings to her faithful friend Mrs. Zina. Mrs.

Zina will therefore benefit from 80 957€ because she has to pay inheritance tax to the State

60%.

 

Finally, Mrs. Zina appoints Planète Enfants & Développement as her sole heir, with the obligation to give 81 000€ to Mrs. Zina.

 

With this second option, Mrs. Rose bequeaths the same amount of 81 000€ to her friend, while giving the association 71 357€.

 

The calculations take into account an allowance of 1 594€.

Is life insurance part of my estate?

NO. Life insurance is not included in the calculation of the inheritance reserve and the available portion. Its transmission is said to be "outside the estate". You can therefore choose 1 or more beneficiaries freely.

How do I designate Planète Enfants & Développement as the beneficiary of my life insurance?

There are several options available to you.

  • You can write your own clause in the life insurance application form.
  • You can write a letter, dated and signed, to give to your insurer. Don't forget to indicate the references of your contract.
  • You can include your wishes in your will.

You can change the beneficiary or beneficiaries of your life insurance at any time.

Sylvie Morin-Miot

In charge of the Transmission of Patrimony

Mail : sylvie.morin-miot@planete-eed.org

Tel : 00 33 (0)1 53 34 86 32

Accompanied by Maître Massuelle, notary

123, Majestic Hall, New York, USA.

+012 345 6789

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