Succession: “How do I withdraw for the benefit of my child?”

A reader of Capital asks for the procedure to follow to renounce an inheritance, including the benefit of life insurance, for the benefit of her son.

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Martine, reader of Capital, asks us the following question: “Hello, I inherit from my deceased mother, life insurance (small sum invested before she turned 70), and some cash in regulated savings accounts (LEP, PEL). I want to pass everything on to my son, so I withdraw for his benefit. What is the procedure to follow? »

Hello Martine, and thank you for your question which will allow us to detail the procedure for renouncing an inheritance. First of all, you must distinguish, in what is transmitted to you by your mother, what actually enters into the inheritance – namely the capital from the bank books – and what is excluded, in this case the your mother’s life insurance.

Distinguish between capital transmitted via inheritance and via life insurance

For the part which concerns the inheritance, “it is in fact possible to renounce for the benefit of one’s children, who thus inherit instead”confirms Nathalie Couzigou-Suhas, notary in Paris. To perform this “generation leap”two solutions: complete the renunciation of inheritance document (Cerfa n°15828*05), which is done at the registry of the judicial court of the place of the inheritance, or directly at the notary.

With regard to life insurance, the approach differs, because the capital is transmitted outside of inheritance. A life insurance policyholder can in fact designate whoever he wishes in the beneficiary clause of his contract. For you to be able to withdraw in favor of your son, the clause written by your mother must specify: “my daughter, and failing that, her heirs”, recalls Master Couzigou-Suhas. Without this clarification, the capital will fall back into the inheritance.

No problem, you will tell us, since you will be able to withdraw for the benefit of your son in the context of the inheritance. Except that the reduction from which the latter will benefit will not be the same: since the sum was placed on life insurance before your mother turned 70, the beneficiary benefits from a reduction of 152,500 euros. On the other hand, if this sum falls into the inheritance, your son will benefit from your personal allowance of 100,000 euros directly, but for the entire capital transferred: LEP, PEL and life insurance included. If the total exceeds 100,000 euros, he will then have to pay inheritance tax.

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