This solution is often considered to transmit one’s real estate assets while reducing gift duties. But what are the consequences?
The donation of bare ownership reduces donation rights up to the value of the bare ownership alone, which is determined according to the age of the donor. It is therefore an interesting solution to anticipate the transmission of your assets under the most advantageous conditions for your children.
Evaluation bare ownership by age group
As long as you keep the usufruct of the real estate, the gift duties will only be calculated on the value of the bare ownership given. Please note that this value is fixed at a flat rate according to the age at which you make this donation. Between the ages of 51 and 60, gift tax will only be calculated on half the value of the property in full ownership, if the donor is aged 61 to 70, this value increases to 60%, then to 70% s if he is between 71 and 80 years old and at 80% if he is between 81 and 90 years old. In other words, the younger you make this donation, the more interesting it becomes.
From a legal point of view
Please note that this rule only applies if the donor does not die within three months of the donation. It should also be remembered that via this donation, the donee disposes of part of his property and he cannot therefore, alone, decide to sell it, especially in the event of dependency. This type of donation is therefore rather appropriate for the transmission of secondary properties or rental housing.
When the death of the parent occurs, the child recovers full ownership of the property concerned without having to pay inheritance tax, the gift tax having already been paid during the donation of the bare ownership.
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