When he settled his mother’s succession, Aude discovered a very unpleasant surprise from the taxman.
It is a rather incredible story but which could affect many French people. After a death, the succession is always a complicated moment for the family, even when the heirs get along and are on the same wavelength. On the other hand, when nothing has been prepared or the children argue to share the heritage, it can quickly turn in Calvary.
To avoid this situation, many parents anticipate the distribution of liquidity and goods. For the dwelling (s) they hold, a solution is often used: that of dismemberment. Parents retain the enjoyment (usufruct) of the house or the apartment in question (home, collection of rents, etc.), while one or children become owners of the walls (bare owners), without being able to take advantage of the property. But subtlety can cost very dear years later.
Aude (assumed first name) has had bitter experience. In 1992, his mother made a donation between her three children. Aude inherited the bare ownership of a house, the value of which is then estimated at € 15,000 (Francs-Euros conversion). It must be said that this old daycare accommodation was then disused, without running water, or bathroom or heating system.
Until his death in 2016, his mother carried out major work on the property. Portal, walls, roofing, gable, interior design of the extension, electricity, plumbing, intercom, facade restoration, lighting, restoration, renovation of apartments … In total, the invoice amounted to 922,843 euros. And the property has gained value.
However, the succession went badly between the brothers and sisters and the court was seized to make an inventory. He considered that the deceased had consciously impoverished by carrying out the work, in order to enhance the good given to his daughter. In short, a way of lightening succession costs. However, justice considered that the work carried out was not necessary: neither a lease nor a legal renovation obligation imposed them.
The amount spent on the work has therefore returned to the calculation of the succession. Not a straw for Aude’s finances. Given the scale in force for the inheritance costs, it had to pay, at least, € 189,815. At least because, in our simulation, only the inheritance of this property is taken into account, the rest of the inheritance relating to private secrecy.
In general, the Civil Code provides that “the usufructuary is only required for maintenance repairs”, while the bare owner must take charge of “large repairs”, which include: large walls and vaults, restoration of beams and whole roofs, dikes, retaining walls, fences, as well as electrical and health systems. So beware if you take care of the repair of the property you are legging to your child.