Here is the amount of money to give to your children during your lifetime to avoid paying inheritance tax

Here is the amount of money to give to your

To make a gift to your children without paying inheritance tax, it is imperative to respect certain rules. Here is the maximum amount and what to declare.

Have you just sold an asset or received some money and want to give part of it to your children? This is an excellent idea if you want to reduce the portion of your assets that will revert to the State after your death and therefore the inheritance taxes that your descendants will have to pay (according to a progressive scale whose rates range from 5 at 45%). Be careful, however, if you do not wish to pay gift tax, the latter must not exceed a certain amount.

To be completely exempt from inheritance tax, a parent can give a maximum of 100,000 euros to their child (minor or adult). This amount is therefore per parent and per child. Please note, the donation must however be declared to the tax authorities even if it is not taxed! It’s the law. For example: Malika and Paul have two children, Léa and Hugo. Each parent can give 100,000 euros to each child, which brings the total amount to 400,000 euros for the couple. Léa receives 100,000 euros from each of her parents, just like Paul. They will therefore each receive 200,000 euros.

This reduction of 100,000 euros can be applied once or in several installments every 15 years. This means that you can give 100,000 euros in installments over a period of 15 years, or give 100,000 euros several times every 15 years. Of course, you can donate money, but this donation can also take another form: movable property (car, jewelry, etc.), real estate and securities (shares, shares, etc.).

Good to know. This donation of 100,000 euros can be combined with a monetary donation (exclusively!), exempt up to a limit of 31,865 euros, paid in one or more installments over a period of 15 years by the same donor (parent or grandparent or great-parent of under 80 years old) to the same beneficiary (by check, transfer, money order or cash transfer). Good news for Léa and Hugo who will therefore be able to receive a total of 131,865 euros from each of their parents (including 31,865 euros necessarily given in money).

There is also a reduction for donations made to grandchildren (minors or adults), but it is lower. It reaches 31,865 euros, and 5,310 euros for great-grandchildren. These reductions are cumulative and a child can therefore receive a donation from his parents and grandparents, within the specified limits.