Succession: “How to bequeath to his nieces and nephews, but not to his brothers and sisters?”

A capital reader wants to know how her aunt can transmit all of her property to her niece, without her brothers and sisters being beneficiaries.

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Marie-Josée, reader of Capital, addresses the following problem to us: “Good evening, my aunt wants to bequeath all her property to her niece. What approach should it do? She has no children, but nine brothers and sisters. ” Hello Marie-Josée, and thank you for your question. It allows to light up a frequent situation: can we promote a nephew or a niece in a succession, to the detriment of his brothers and sisters? The answer is yes, provided you take certain precautions to lighten the tax bill.

First of all, it should be remembered that in French law, only children-and in some cases the spouse-are reserved heirs, that is to say that the law guarantees them a minimum part of the inheritance. In the absence of children, your aunt can therefore freely bequeath her heritage to whom she wishes, including a niece or a nephew. His brothers and sisters have no right of reserve, and cannot contest this choice.

An aunt is free to promote her nephews or nieces

The simplest solution, to favor nephews or nieces is to write a will, preferably with a notary to guarantee its validity and conservation. Your aunt will have to clearly designate his niece as a universal legatee, that is to say beneficiary of all of his property.

Be careful however, because if it is quite possible to gratify a nephew or a niece, inheritance tax can however be high. As Mathilde Carrier, investment advisor and heritage recalls in Nîmes, “The applicable reduction is 7,967 euros only”. In other words, beyond this amount, the amounts bequeathed will be taxed at 55%: “You bequeath a good of 100,000 euros, your nephew or niece will benefit from the reduction of 7,967 euros, then will be taxed at 55% on the remaining 92,033 euros”details Mathilde Carrier. Thus, in this example, 50,618.15 euros will be due in inheritance tax.

Life insurance is an ideal solution before its 70th birthday

It can therefore be interesting to consider other solutions, such as life insurance, if your aunt wishes to transmit capital in better tax conditions. Indeed, if it makes payments on this savings product before its 70th anniversary, its niece will benefit from a much more substantial reduction in 152,500 eurosbefore taxation. Another option: donation during his lifetime. A family donation of a sum of money can be exempt up to 31,865 eurosprovided that your aunt is under the age of 80 and that the niece is major. “This donation can be accumulated at the reduction of 7,967 euros applicable to the estate”specifies our expert.

Finally, a last track may consist in asking the brothers and sisters to give up the succession, which would allow their children (nephews and nieces) to inherit representation. But beware: in this case, the applicable abatement is that between brothers and sisters (15,932 euros), to be distributed among all the nephews and nieces concerned, before a taxation at 45%. This option is therefore not always the most advantageous.

In summary, your aunt can completely transmit his heritage to his niece. The important thing is to anticipate, to limit taxation as much as possible. A notarial will, supplemented by life insurance or a donation, can be the solution.

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