In general, for real estate, heirs risk paying up to 45% inheritance tax. Unless parents anticipate.
Transmitting a real estate assets to your children may seem like a good gift, but in reality it can also cause them certain problems, especially in terms of financial terms. In France, inheritance tax on real estate can quickly increase, especially if the heritage is high. Each child benefits from a reduction of 100,000 euros, but beyond, taxes can reach up to 45 %. If the heirs do not have enough liquidity to pay for these costs, they can be forced to sell well quickly, sometimes at a loss. In addition, if the deceased leaves a property with a credit in progress and the borrower insurance does not cover everything, the children who have accepted the succession must continue to reimburse the monthly payments. In the absence of means, they may go into debt or be forced to sell …
To avoid putting her children in such a situation, Maître Marina Stefania, specialist in family and criminal law, alias @marina_stefania_avocat on the tiktok network, advises families who have real estate to transmit to set up the dismemberment of property. Concretely, it is a legal technique which makes it possible to divide the property of a property into two parts: the usufructuary and the bare owner.
“You keep usufruct, you continue to live in the good or to perceive the rents. And your children recover the bare ownership, without paying inheritance rights to your death”explains the lawyer in one of his Tiktok videos. Result: on the death of the parent, “Children will automatically recover full ownership without paying inheritance tax on the total value of the property” They therefore inherit at a lower cost,, underlines the specialist before adding that “The dismemberment of property is the ideal tax lever to prepare for the future”. And that’s not all …
Please note, to maximize savings, you have to do it as soon as possible. “The more you anticipate, the more soft the taxation on the inheritance for your heirs. Waiting is to pay more”Comments Maître Marina Stefania. Of course, this kind of device must be discussed and prepared with a professional and in particular a notary.
