In summary…
With the single allowance of €100,000 per parent, a couple transferring €768,730 to their son pays €110,135 in inheritance tax. By combining four tax breaks per parent (the allowance under Article 779, the family gift allowance under Article 790 G, the exemption under Article 790 A bis for new housing or energy-efficient renovations, and the assurance-vie policy under Article 990 I), the same sum is tax-free. The 790 A bis tier of tax breaks closes on December 31, 2026.
1. The cost of a single-stage transmission
In the direct line, each child benefits from a tax allowance of €100,000 per parent (Article 779 of the French General Tax Code). Beyond this amount, the scale of Article 777 applies, with a tax bracket of 20% (%) between €15,932 and €552,324.
For €384,365 transferred from a parent to their child, the taxable base is €284,365 and the tax due amounts to €55,067. If each parent transfers the same amount, the tax bill rises to €110,135.
2. The four floors, per parent and per child
Each device has its own limit, and they are cumulative. It is this stacking effect that makes the difference in a estate planning.
- Floor 1: €100,000. The direct line allowance of article 779, which is renewed every fifteen years.
- Floor 2: €31,865. Family gifts of money under Article 790 G: donor under 80 years of age, adult child. This is in addition to the €100,000 allowance.
- Floor 3: €100,000. The exemption under Article 790 A bis applies to cash gifts earmarked for the purchase of a new or off-plan property, or for energy-efficient renovations of a primary residence. This exemption applies to gifts made up to December 31, 2026.the device in detail).
- Floor 4: €152,500. The tax allowance under Article 990 I on capital gains’assurance-vie, per beneficiary, for premiums paid before age 70.
3. Concrete example
Situation. A couple aged 64 and 66, with a 34-year-old son, who are buying a new apartment to live in.
Issue. With only the allowance of €100,000 per parent, transferring €384,365 costs €55,067 in taxes per parent: €110,135 for the couple.
Strategy. Each parent gives €231,865 during their lifetime (€100,000 allowance, €31,865 family gift, €100,000 exempt under 790 A bis) and designates their son as the beneficiary of a assurance-vie contract funded before age 70, up to €152,500.
Result. €384,365 per parent, €768,730 for the couple. €0 in taxes instead of €110,135.
4. Conditions of floor 790 A bis
The funds must be allocated no later than the last day of the sixth month following the payment. The property must remain the beneficiary's primary residence for at least five years; it may also be rented out, provided that the tenant establishes their primary residence there and is not part of the beneficiary's tax household.
The limit is €100,000 per donor and per beneficiary, and €300,000 per beneficiary, across all donors. Beneficiaries are children, grandchildren, and great-grandchildren, or, in the absence of descendants, nephews and nieces.
5. What causes the strategy to fail
A gift 790 A bis not allocated within six months, or a dwelling which ceases to be a main residence before five years: the exemption is called into question.
A family gift made after age 80: Article 790 G no longer applies.
Assurance-vie premiums paid after age 70 fall under Article 757 B, with a total allowance of €30,500 for all beneficiaries combined. Premiums that are clearly excessive in relation to the estate may be included in the inheritance.
Frequently asked questions
How is this calculated with two children?
Each tax bracket applies per parent and per child. If each of the two children finances an eligible property, the couple can transfer €1,537,460 tax-free, or €768,730 per child.
Will the floor of 790 A bis still exist after 2026?
It targets gifts made up to December 31, 2026. The other three tiers are not limited in time.
Can grandparents stack things too?
Yes, with their own tiers: €31,865 allowance per grandchild (article 790 B), €31,865 family gift (article 790 G), €100,000 under 790 A bis, and assurance-vie, for which the allowance of €152,500 applies regardless of the relationship.
Do you want to know how many floors apply to your family? Book an appointment : we will calculate each floor based on your situation, before December 31st.
