Succession: “Can a donation of money be subject to inheritance tax?”

A capital reader wonders about the tax consequences of a donation made to her only daughter. She fears to be imposed a second time, at the time of her succession.

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Camille, reader of capital, addresses the following question: “Hello, I donated my daughter a donation of money in 2017. The rights were paid in due time. But I do not understand: even if the rights have been paid, the donation will be reintegrated into the succession? What would amount to paying twice? ”

Hello Camille, and thank you for your question, which allows us to return to an important point concerning the tax rules surrounding the donations during his lifetime. Rest assured, a donation is not the subject of a double taxation. But in some cases it can reduce the tax advantages linked to the succession.

To put it clearly immediately: “You have paid up rights at the time of donation: there will therefore be no other rights to pay on this donation of money to your death”, Assures Mathilde Carrier, investment advisor and heritage in Nîmes. On the other hand, the sum given will deduction from the tax reduction to which your daughter is entitled in the context of the estate.

No double taxation, but a reduction to be monitored

As a reminder, in direct line, each child benefits from a reduction of 100,000 euros, valid on all the donations and successions combined over a period of 15 years. However, you tell us that you have already paid donation rights, which means that the latter was greater than 100,000 euros, or even 131,865 euros, since the tax administration provides for another abatement, recalls Mathilde Carrier: “If a donation made of the donor’s lifetime is made of money to a major child, then this donation is exempt up to 31,865 euros, an also renewable abatement every 15 years, and accumulated with that of 100,000 euros”for a total, therefore, of 131,865 euros.

Take two examples to see more clearly. Madame A gave 75,000 euros to her major daughter in 2017. If she died in 2029, the allowance has not yet been reconstituted, and her daughter will only benefit from a reduction of 56,865 euros on the succession (131,865 – 75,000 euros used = 56,865 euros remaining). It will therefore have to settle inheritance rights beyond this amount. On the other hand, if Madame A is still alive in 2033, her daughter will fully benefit from a new reduction of 131,865 euros, and will not pay rights on this part of the inheritance when the death arises.

Another example: Madame B gives 200,000 euros to her major daughter. The latter is therefore exempt from donation rights over 131,865 euros, but must, however, pay the remaining 68,135 euros. On the death of Madame B, whether he intervenes 15 years or not after this donation, there will be no additional tax to pay on this sum: “Inheritance rights apply to the rest of the inheritance mass”recalls Mathilde Carrier. On the other hand, on the goods – including the sums of money – which remain to be transmitted, Madame B’s daughter will be able to take advantage of a new reduction if the death takes place 15 years after this donation, but not if it takes place before.