Bernard, reader of Capitaladdresses the following question: “Hello, we have a common PEL with my wife. We have two children. In the event of the deaths of both of us, what is the most interesting for the inheritance of children: life insurance or pel? ”
Hello Bernard, and thank you for your question, which will allow us to compare two very widespread savings envelopes but with very different tax and inheritance rules.
The capital held on a PEL enters directly into the succession
The PEL is a so -called “regulated” banking product (available under the same conditions in all banks). On your death, the capital detained there is integrated into the succession: it joins everything you have on your other accounts and booklets. Your two children will therefore share this sum in equal parts, and the whole will be subject to the tax regime for inheritance rights in direct line. Thus, each child benefits from a reduction of 100,000 euros, renewable every 15 years, then the inheritance tax applied beyond. As you can see: the PEL does not benefit from a specific advantage during transmission.
With life insurance, up to 152,500 euros in reduction per child
Conversely, life insurance is often considered the ideal placement to bequeath to your loved ones. It makes it possible to designate the beneficiaries of its choice, and the transmission benefits from a very advantageous tax regime. For the premiums paid before 70 years, each beneficiary benefits from a reduction of 152,500 euros, beyond which apply for a flat-rate taxation (20%, then 31.25%). For bonuses paid after 70 years, the overall reduction is 30,500 euros on capital, but interest is exempt. Result: in terms of inheritance taxation, life insurance is much more advantageous than a PEL.
This without counting that the PEL is limited by a ceiling of 61,200 euros, so you will not be able to bequeath more with this savings product. While with life insurance, you will not have a payment limit.
>> Our service – Test our life insurance comparator
Capital answers you
Do you have a question about your life insurance contract, your savings booklets, your real estate investments? Place it to our expert who will answer you: Capital you
