Question of the day:
«Alexis, I’ve spent my life building this wealth. Today, my biggest fear is that half of it will disappear in inheritance taxes or that my children will fight over an apartment. What options do I have?»
This concern is the starting point of all estate planning successful. Passing on one's assets is not a simple administrative formality; it is a complex management act that requires juggling civil law, taxation, and family psychology. In France, without planning ahead, the inheritance can prove to be heavily taxed (up to 45 % in direct line and 60 % between third parties).
At the house of Balmont Conseil, I act as the architect of your estate planning. As a wealth management expert, assisted by a AI-Enhanced Asset Management Engineer, I use innovation to model the impact of each tool for transferring assets, aiming at a wealth balance optimal and an minimizing tax costs.
Overview of Wealth Transmission Tools
There is no "miracle" tool, but rather a combination of solutions tailored to each individual situation. asset assessment.
Why use transmission tools?
The objective of a anticipated inheritance is threefold:
- Reduce the tax burden: Use the tax breaks renewable every 15 years.
- Protecting your loved ones: Ensuring a quality of life at surviving spouse and avoid joint ownership between the children.
- Maintaining control: Transferring ownership while retaining income or management power.
Donating: Transferring property during one's lifetime
It is the most direct tool for planning one's succession in advance and reducing the overall tax burden.
Gifts made by hand and family: They allow sums of money (up to €31,865 every 15 years) to be transferred in total exemption, in addition to the classic allowances.
The Gift-Sharing: It fixes the value of the assets on the day of the deed, thus avoiding recalculations upon death and preventing family conflicts.
The "Generation Leap": Transgenerational gift allows you to directly benefit your grandchildren while taking advantage of their own tax allowances.
Property division: Optimization through subdivision
It is one of the most powerful levers in wealth management. It consists of separating the'usufruct (right of use and revenues) of the bare ownership (property of the walls).
- The advantage: You are giving away the bare ownership. Gift tax is calculated solely on the value of bare ownership (according to a scale linked to your age).
- Upon death, the usufruct ends and the donee recovers full ownership without any additional tax.
Life Insurance: The "Swiss Army Knife" of Taxation
L''assurance-vie It benefits from an exceptional civil and tax regime. It is considered "outside the estate".
- Taxation: For payments made before age 70, each designated beneficiary can receive up to €152,500 without any inheritance tax.
- Flexibility: Thanks to beneficiary clauses custom-made, you can designate whomever you want, beyond the forced heirs, within reasonable limits.
The SCI (Société Civile Immobilière)
The SCI allows the transfer of a real estate assets in the form of shares.
- Benefits : It is easier to transfer shares in a French SCI (Société Civile Immobilière) than portions of a building. Furthermore, the value of the shares can be reduced by the company's debt, thus lowering the tax base for transfer taxes. It also allows for the retention of management (control) with very few shares.
Wills and bequests
THE will allows you to organize the distribution of the "disposable portion" (the share you can freely use after the children's reserve).
- Universal or specific bequest: They allow specific assets to be allocated to chosen individuals. This is an essential tool for the spouse protection unmarried (civil partner).
Strategies advances Tailor-made solutions for complex profiles
The Dutreil Pact for entrepreneurs
For business leaders, the Dutreil Pact is an opportunity to'tax optimization major.
It allows 75 % of the company's value to be exempted from transfer taxes, subject to a commitment to retain the securities.
The Gift Between Spouses and the Pre-Inheritance Clause
As part of a matrimonial regime of community, the gift between spouses (or "gift to the last surviving spouse") increases the rights of the survivor.
There clause of preferential share, Inserted in the marriage contract, it allows the survivor to take certain assets (often the main residence) before any division, without paying any taxes.
The Retirement Savings Plan (PER)
Although little known as a transfer tool, the PER allows, in the event of death before age 70, the transfer of capital with the allowances of assurance-vie (Art. 990 I), while having benefited from a tax deduction upon entry.
Comparison of the main transmission tools
Here is a comparative table of the main tools for transferring assets.
How to prepare for the transfer of your assets?
The Suitability Balmont Conseil Engineering at the service of humanity
Why entrust your business transfer to Balmont Conseil? Because we are not simply intermediaries, we are designers of wealth management strategies high precision.
Why entrust your business transfer to Balmont Conseil?
Because we are not simply intermediaries, we are designers of wealth management strategies high precision.
- Recognized expertise: Our firm is proficient in the most sophisticated arrangements (Dutreil, cross-ownership, split beneficiary clauses).
- Augmented Asset Engineering: We use AI to simulate the evolution of your assets over 20 or 30 years, incorporating probable inheritance taxes according to different scenarios.
- A neutral and educational approach: Our role is to present you with all the options, along with their advantages and limitations, without any bias towards any financial product.
- Coordination of experts: We act as the conductor between your notary, your tax lawyer, and yourself to guarantee the minimizing tax costs.
FAQ Your questions about transmission
Anticipate to better protect
Estate planning is the final step in managing your life. If poorly planned, it can become a source of tension and financial drain. When well orchestrated, it becomes an act of care that ensures the longevity of your legacy and protects your loved ones.
Don't leave your inheritance to chance or the tax authorities.
Alexis Sagnier
With over 17 years of expertise in financial engineering, Alexis Sagnier assists executives and expatriates in securing their cross-border challenges.
Sources & References:
CGI – Transfer taxes (art. 757, 777, 990 I)
BOFiP ENR-DMTG
Civil Code (art. 720 et seq., 815 joint ownership)
Dutreil Pact (art. 787 B)
