Succession: How is the sale price of a demembllation property is distributed?

In the “big savings meeting” (capital / radio heritage), Clarisse Josse, notary in Paris, responds to an auditor who wonders about the distribution of funds after the sale of a property in dismemberment.

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Each month, the “big savings meeting” (capital / radio heritage) answers your questions in the “your questions, our answers” sequence. Our experts – notaries, heritage advisers, transmission specialists – support you on all your concerns about your assets, whether inheritance, investment, taxation or savings. Today, Clarisse Josse, notary in Paris, responds to Valérie, who wants to know how the sale price of the family home will be distributed after the death of her father, knowing that her mother has a part in full ownership and the another usufruct.

First of all, the notary insists on the importance of anticipating this question before the sale: “If nothing has been planned upstream, the notary in charge of the transaction will automatically distribute the sale price between the various owners.” In this case, Valérie’s mother will first receive the share corresponding to her full property, or 50% of the value of the property. For the part held in dismemberment (usufruct for the mother, bare ownership for children), the distribution will depend on the age of the mother at the time of the sale: “The share of the usufructuary is calculated according to a tax scale based on his age. For example, if it is between 81 and 90 years old, it will receive 20% of the value of this part of the property, the rest being shared between children. ” Thus, if the property is sold 400,000 euros, Valérie’s mother will receive 50% of the sum (200,000 euros) for her full ownership, then 20% of the remaining 200,000 euros, or 40,000 euros, while her children will share the balance.

However, it is possible to modify this distribution if all the heirs agree. “They can choose to reinvest the product of the sale in other dismembered assets, such as a capitalization contract or life insurance for the mother and bare ownership for children”explains Clarisse Josse. Another alternative is that the mother perceives the entire sale price in “quasi-usufruct”. A solution to consider if the mother is in financial difficulty, for example, or to finance her end of life, subject to the agreement of children and a specific agreement to have registered with the tax administration.

Ultimately, “There is a room for maneuver on the distribution of the sale price, but it must be anticipated, even if the promise of sale has already been signed”concludes the notary.

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