It is possible to make a gift to your children without having to pay inheritance tax to the State. Here is the ceiling on the amounts you can pass on, the rules to follow and the declarations to make.
Have you recently sold an asset or received a sum of money and wish to give some of it to your children? This is an excellent way to reduce the portion of your assets subject to inheritance tax after your death, thus reducing the tax burden for your heirs. However, it is crucial to know that there is a ceiling if you want to avoid gift tax.
A parent can give up to 100,000 euros to a child, whether a minor or an adult, without paying inheritance tax. This ceiling applies per parent and per child. It is imperative to declare this donation to the tax authorities, even if it is not taxable. For example, in the case of Malika and Paul, who have two children, Léa and Hugo, each parent can pass on 100,000 euros to each child, for a total of 400,000 euros for the couple. Thus, Léa receives 100,000 euros from each of her parents, as does Hugo, for a total amount of 200,000 euros each.
This allowance of 100,000 euros can be used in one go or spread over several donations over a period of 15 years. You can therefore choose to give 100,000 euros in several installments over 15 years, or repeat this donation every 15 years. In addition, the donation can take different forms: money, movable property such as a car or jewelry, real estate or even securities such as shares or company shares.
Please also note that this exemption of 100,000 euros can be combined with another exempt donation in cash (only!) up to 31,865 euros, made in one or more installments over 15 years, provided that the donor (parent, grandparent or great-grandparent) is under 80 years old. This sum can be paid by check, transfer, money order or in cash.
This therefore allows Léa and Hugo to receive up to 131,865 euros from each of their parents, including 31,865 euros which must be in cash. For grandchildren, an allowance of 31,865 euros applies, while for great-grandchildren, it is 5,310 euros. These allowances are cumulative, which means that a child can receive a donation from his parents and his grandparents within the limits provided.