Inheritance, life insurance: deputies change the rules against the advice of the government

During the examination of the 2025 Budget, deputies voted to increase the reduction for direct line transmissions. They have also adopted the possibility of transmitting in advance the premiums of a life insurance contract to its beneficiaries.

Will the rules regarding transmission change? Nothing is less certain at this stage of the examination of the finance bill (PLF) for 2025, the threat of recourse to article 49-3 becoming a little more precise each day according to the snubs suffered. by the government. But the signal from the deputies is clear: they intend to act on the taxation of donations and inheritances. And if the amendments aimed at reduce gift taxes for spouses’ children in stepfamilies were rejected during the examination of the text in the hemicycle on Thursday October 24, the parliamentarians on the other hand did indeed adopt several measures reducing taxation during transmissions. Two amendments, raising the reductions on donations and inheritances for the benefit of children or ascendants, as well as another, authorizing certain life insurance holders to carry out an advance transfer for the benefit of the beneficiaries of the contract, have in fact been validated.

Direct line allowances increased from 100,000 to 120,000 euros

Thus, the “direct line” reduction, which benefits a child as well as ascendants (parents, grandparents, etc.) during an inheritance or donationwas enhanced via the adoption of two amendments, respectively brought by the deputy of the Union of Democrats for the Republic (UDR) Gérault Verny and the elected National Rally Jean-Philippe Tanguy. Two identical amendments which raise this duty-free amount to 120,000 euros, compared to 100,000 euros today. An amount that has not been modified since 2012, when it went from 159,325 to 100,000 euros.

For Gérault Verny, this measure aims to “increase the purchasing power of younger generations”he justified, the RN also adding that it was only a matter of catching up with inflation between 2012 and 2024. Arguments which did not resonate with the general rapporteur of the Budget, Charles de Courson (Liot), the latter reporting that “any reform of this type would necessarily be costly”. Same reception from the Minister of Public Accounts, Laurent Saint-Martin, who also gave an unfavorable opinion to these amendments, citing a cost for public finances of“a little over two billion euros”. Despite their opposition, the deputies narrowly voted (88 votes against 82) for this reduction in rights.

Early transfer of life insurance adopted

Another measure aimed at facilitating transmissions between generations, and “which costs nothing”according to the MP behind the amendment, Véronique Louwagie (Republican Right), was adopted by the Assembly. She plans to “allow advance transmission to beneficiaries of life insurance contracts of premiums paid before October 1, 2024 by holders before their 70th birthday, and having reached 70 years of age on December 31, 2025, within the limit of 152,500 euros per beneficiary”. As a reminder, when the life insurance policyholder has made payments before the age of 70 on the contract, each of his beneficiaries benefits from a reduction of 152,500 euros at the time of his death.

The adopted amendment therefore aims to advance this possibility, “for the year 2025 alone”. An advance, and not an additional tax advantage, since “the reductions used by this system would then be deducted from reductions of the same nature, if they still exist, on the date of death”specifies the statement of reasons for the amendment. Here again, despite the opposition of Charles de Courson and Laurent Saint-Martin, the measure was adopted – and very widely this time (110 votes for, 65 against).