If one decides to live with power over all wearing the older generation to a younger generation, then the decision is often motivated by the desire to save inheritance tax in the future or to prevent. If you decide so, do it methodically. Below are some handles.
Wealth Planning focuses on the legal and fiscal assistance of the transition and maintain capabilities. The aim is an ability to carry the most tax-friendly way from one generation to another. And there is quite a wait for some power. By rising share prices, rising house prices and increased earnings over the last decades is the ability grew gigantic. There is an estimate which will be alone with the transfer of the assets of the baby boomers in the next 30 years, an amount of 60 billion euros. And it saves some or gradually in the coming years occurred within the scope of the gift tax, or to be suddenly settled there following the death of the elder generation. You will be given to the gift tax, inheritance, matrimonial property and tax law. The arrangements you will have to fit together as well as possible. This is why planning is so important.
The argument for power transfer is the savings on future inheritance. Because if the power changes by a donation of generation, making it no longer a part of the future inheritance. Create a schedule for that. For example, you might spread in 10 to 15 years old can make a regular donation. By donating annually smaller amounts, so avoid the double progression of the inheritance tax on death. As a result of the donations is the top ?? ?? from inheritance skimmed off and there is a progression advantage.
A couple with a child has a capacity ?? 200.000, -. They decide to for 10 years to life ?? 20.000, - per year to give the child.
About the gift the child's gift tax payable annually by 5%. But the relatively low amount makes the gift tax low. Taking into account the annual exemption, the child ?? 779 - due. During the period of 10 years should therefore ?? 7790, - to be paid gift tax.
The donation would not take place and over 10 years of seizures assets in the estate to the child, then a charge to inheritance tax due from ?? 16302, -. Through the donations amount saved from ?? 8512, -.
These include an agreement in which the donor specifies the recipient to donate an asset for no consideration and with the intention of favoring the recipient. You can donate money, but also movable or immovable property. In principle, there is no notarial deed is required, except for donation of real estate or shares in your limited company. Even if the gift under the clause on the matter of death ?? ?? * is given a notarial deed is required. But in order to prove the donation, it is recommended that all down in writing. This may be of importance in connection with the 180 days period from the taxman. This means that if the donor dies within 180 days of the donation can be reversed by the tax authorities and can still be put under the charge of the inheritance law. This is to prevent someone in the face of death soon have even a particle is trying to arrange. It is therefore important to be able to show when the gift has taken place.
* This clause stipulates that the recipient actually receives the donation only after the death of the donor.
It is quite possible to make the donation certain conditions; the donation clause. On this is a lot to say. Then I would like to come back in a subsequent article.