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Capitalisation contract simulator: savings, tax and wealth transfer
The capitalisation contract is the little-known twin of assurance-vie: same taxation of withdrawals, same allowances of €4,600 / €9,200 after 8 years, same 7.5% levy. What most people do not realise is that its apparent flaw — it forms part of the estate, as it has no beneficiary clause — is in fact its strength: it can be given during your lifetime while keeping its tax seniority.
Allowance of €4,600 / €9,200 after 8 years, then 7.5% + 17.2%
While keeping its tax seniority, ideal for split of ownership (bare ownership / usufruct)
The only wrapper of its kind open to a company subject to corporation tax or a family holding company
The simulator
Simulate your capitalisation contract
The projection applies the tax treatment of a withdrawal after 8 years, identical to assurance-vie. Your data is neither stored nor transmitted.
Capitalisation contract simulator
Plan your capitalisation contract, its capital gain and its taxation — the cousin of assurance-vie that is passed on.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why the capitalisation contract is the blind spot of wealth savings
Assurance-vie dominates savers' minds: it is the leading financial asset of the French, massively distributed through bank networks. Its cousin, the capitalisation contract, remains largely unknown to the general public — not because it is inferior, but because it addresses needs that mass distribution does not: organised wealth transfer, split of ownership, and investment of company cash.
Throughout the life of the contract, the two wrappers are twins: same taxation of withdrawals, same allowance of €4,600 (€9,200 for a couple) after 8 years, same 7.5% levy on the portion corresponding to premiums paid up to €150,000. A saver who simply wants to grow capital will see no difference in use.
The difference comes on death — and that is where the capitalisation contract shows what sets it apart. Assurance-vie pays out outside the estate via the beneficiary clause. The capitalisation contract, by contrast, forms part of the estate and passes under the ordinary rules of inheritance law. What looks like a drawback becomes, in the hands of an adviser, a lever for early wealth transfer and a business tool.
What the calculation shows
The 3 uses your bank adviser will not suggest
Unlike assurance-vie, the capitalisation contract can be gifted during your lifetime, in full ownership or split, while keeping its tax seniority. In practice, the recipient receives a “dated” contract: if it has already passed the 8-year mark, future withdrawals immediately benefit from the allowance and the reduced rate, without starting from zero. You thus pass on capital that is already tax-optimised, whereas most cash gifts force the heir to build up their own seniority from scratch.
You can gift the bare ownership of the contract to your children while keeping theusufruct, and therefore the income. The gift partially clears the duties, the usufruct scale reduces the taxable base according to your age (the earlier you give, the lower the base), and on death the usufruct ends with no further duties: your children become full owners free of tax. Unlike assurance-vie, no age threshold (the famous age 70) changes the picture — the strategy remains consistent whatever your age.
A company subject to corporation tax — family holding company, SCI taxed as a company — cannot take out assurance-vie, but it can hold a capitalisation contract. It is the benchmark solution for investing a company's surplus cash in diversified assets rather than leaving it idle in a current account. Its taxation is specific: an annual flat-rate charge on a notional base, adjusted on withdrawal. For a business owner sitting on company cash, it is often the first optimisation reflex — and a subject that mass-market advisers never raise.
Case study
Case study: Henri, 67, retired notary in Aix-en-Provence
Henri has €300,000 in cash and wants to plan ahead for passing his wealth to his two children while keeping an income. He takes out a €300,000 capitalisation contract, lets it grow at 4.5% net for 8 years to pass the 8-year tax milestone, then gifts the bare ownership through split of ownership. Here is what the simulator and the strategy project:
| Step | Mechanism | Wealth effect |
|---|---|---|
| Taken out at age 67 | €300,000 invested at 4.5% net | Capital at work, tax seniority accruing |
| Projected capital at 8 years | ≈ €426,000 | Capital gain accumulated free of tax |
| Gift of bare ownership | Usufruct retained, taxable base reduced by the age-based scale | ≈ 70% of the value, gifted at age 75 (Article 669 of the French Tax Code) |
| On Henri's death | Usufruct extinguished | Full ownership to the children, with no further duties |
Henri keeps the usufruct, and therefore the income from the contract, until his death, while having passed on the bare ownership at a value reduced by the usufruct scale. The contract keeps its seniority: his children receive a wrapper already past the 8-year mark, immediately optimised for their future withdrawals.
This case illustrates what assurance-vie cannot do: organise a transfer during one's lifetime, gradual and reversible in its timing, without facing the age-70 cut-off. The capitalisation contract is not just another investment — it is a wealth transfer tool in its own right.
In practice
A strategic tool, not just an investment
This simulator calculates the capital and the taxation of a withdrawal, identical to assurance-vie. But the value of the capitalisation contract does not show in these figures: it lies in the strategy around it — gift with split of ownership, timing of the transfer, coordination with a holding company or a company subject to corporation tax. Taken out without a plan, it offers nothing more than assurance-vie. Built into a wealth transfer or company cash strategy, it becomes irreplaceable.
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. Open architecture allows us to select the contract and the investment options from among our partners, and to build the succession or corporate cash investment mechanism that serves your interest. Let's book an appointment to determine whether the capitalisation contract has a place in your strategy.
Frequently asked questions
What clients ask us.
What is the difference between a capitalisation contract and assurance-vie?
During the life of the contract, none: same taxation of withdrawals, same allowance of €4,600 / €9,200 after 8 years, same 7.5% levy. The difference comes on death. Assurance-vie pays out outside the estate via the beneficiary clause (€152,500 exempt per beneficiary for premiums paid before age 70). The capitalisation contract, by contrast, has no beneficiary clause: it forms part of the estate and passes under the ordinary rules of inheritance law — which opens the way to gifts and split of ownership during your lifetime.
Why would forming part of the estate be an advantage?
Because it allows wealth to be passed on early, which is impossible with assurance-vie. You can give the contract during your lifetime, in full ownership or split (bare ownership to the children, usufruct retained), while keeping its tax seniority: the recipient receives a “dated” contract, often already past the 8-year mark. The gift partially clears the duties, the usufruct scale reduces the taxable base according to your age, and on death the usufruct ends with no further duties.
Can a company hold a capitalisation contract?
Yes, and it is one of its main uses. A company subject to corporation tax (family holding company, SCI taxed as a company) cannot take out assurance-vie, but it can hold a capitalisation contract. It is the benchmark solution for investing a company's surplus cash in diversified assets. Its taxation is specific: an annual flat-rate charge applies on a notional base, adjusted on withdrawal. Setting it up warrants the support of an adviser.
Is there an age limit like the 70 years for assurance-vie?
No, and it is a notable advantage. With assurance-vie, passing age 70 profoundly changes the taxation of the transfer (allowance of €152,500 before 70, overall allowance of €30,500 after). The capitalisation contract ignores this threshold: its gift and split of ownership logic remains consistent whatever your age. This makes it a particularly suitable tool for people planning their wealth transfer beyond age 70.
How does Balmont Conseil differ from a bank adviser on this product?
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. A bank adviser rarely sells a capitalisation contract: it is not a high-volume product, and it requires engineering (gift, split of ownership, holding-company structuring) that goes beyond standard distribution. Open architecture allows us to select the contract from among our partners and to fit it into a succession or corporate cash strategy designed for you.
