{"id":277,"date":"2026-01-29T13:59:21","date_gmt":"2026-01-29T12:59:21","guid":{"rendered":"https:\/\/balmontconseil.com\/?page_id=277"},"modified":"2026-08-26T18:45:27","modified_gmt":"2026-08-26T16:45:27","slug":"demembrement-de-propriete","status":"publish","type":"page","link":"https:\/\/balmontconseil.com\/en\/ingenierie-patrimoniale\/demembrement-de-propriete\/","title":{"rendered":"Division of ownership"},"content":{"rendered":"<p class=\"wp-block-paragraph\">\u00ab&quot;Alexis, I&#039;d like to give an apartment to my children to reduce their future inheritance taxes, but I can&#039;t afford to lose the rent I receive. What can I do?&quot;\u00bb<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This issue is central to wealth management engineering. The answer lies in a powerful and age-old legal mechanism: the <strong>division of ownership<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the house of <strong>Balmont Conseil<\/strong>, We use this lever as a true keystone of your <strong>transmission strategy<\/strong>. As an Augmented Asset Engineer, my mission is to make this technique accessible and to orchestrate it so that it serves your protection and...\u2019<strong><a href=\"https:\/\/balmontconseil.com\/en\/gestion-de-patrimoine\/\">tax optimization<\/a><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. What is the division of ownership rights?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In French law, full ownership of a property comprises three prerogatives: the right to use the property (to live in it), to receive its income (rent), and to dispose of it (to sell it). Dismemberment of ownership consists of separating these rights into two distinct entities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Usufruct:<\/strong> It is the right to use the property and to receive the income from it.\u2019<strong>usufructuary<\/strong> can live in the accommodation or rent it out to collect rent.<\/li>\n\n\n\n<li><strong>Bare ownership:<\/strong> It is the right to dispose of the property (sell it, with the agreement of the usufructuary) and to become its full owner upon the extinction of the dismemberment.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Temporary dismemberment vs. life annuity<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Life annuity division:<\/strong> The most common type is within a family context. It lasts until the death of the usufructuary.<\/li>\n\n\n\n<li><strong>Temporary dismemberment:<\/strong> Fixed for a specific period (for example, 10 or 15 years). It is often used for strategies of <strong>temporary division of usufruct<\/strong> for the benefit of a student child or a company.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. Why use dismemberment? Key advantages<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Dismemberment is not just a legal concept; it is a tool of <strong>estate planning<\/strong> with multiple benefits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A low-cost transfer of assets<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">By carrying out a <strong>donation with reservation of usufruct<\/strong>, You give the bare ownership to your children while retaining the use of the property.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The tax benefit:<\/strong> Gift taxes are calculated only on the <strong>tax value of bare ownership<\/strong> (which is a fraction of the total value depending on the age of the usufructuary).<\/li>\n\n\n\n<li><strong>The tax allowance on gifts:<\/strong> You benefit from the legal allowances (\u20ac100,000 per parent and per child every 15 years) on a reduced taxable base.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Protection of the surviving spouse<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In the case of an inheritance, the <strong>surviving spouse in usufruct<\/strong> can remain in the family home and receive investment income, guaranteeing their standard of living, while the children are <strong>bare owners<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Optimized taxation (Wealth Tax and Income Tax)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The bare owner is not taxed on the income (since they do not receive it). Furthermore, in the context of a split ownership arrangement, it is generally the usufructuary who is liable for the French Real Estate Wealth Tax (IFI) on the full ownership value of the property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. How does land consolidation work?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">THE <strong>property consolidation<\/strong> is the moment when the usufruct joins the bare ownership to reform full ownership.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The main advantage:<\/strong> To the <strong>end of the dismemberment<\/strong> (usually upon the death of the usufructuary), the bare owner recovers full ownership <strong>without any additional tax<\/strong> and without complicated formalities. It&#039;s the most efficient method for a <strong><a href=\"https:\/\/balmontconseil.com\/en\/transmission-protection\/\">inheritance<\/a><\/strong> without tax friction.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4. Obligations and allocation of costs<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There <strong>management of split assets<\/strong> imposes a precise distribution of rights and duties as defined by the Civil Code:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The usufructuary:<\/strong> He must ensure routine maintenance and pay for <strong>charges and repairs<\/strong> Say &quot;maintenance&quot;. He also pays the property tax.<\/li>\n\n\n\n<li><strong>The bare owner:<\/strong> He is in charge of &quot;major repairs&quot; (retaining walls, vaults, complete roofs).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Balmont&#039;s expertise:<\/strong> To avoid any <strong>conflict between heirs<\/strong>, We recommend drafting a customized ownership division agreement to arrange this distribution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5. Concrete applications: Investment examples<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Buying bare ownership<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An investor buys the bare ownership of a property at a significant discount (often 30 to 40%). For 15 years, they have no management or tax concerns. At the end of the term, they regain full ownership of a property that has increased in value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The usufructuary in SCPI<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Investing your cash reserves as\u2019<strong>usufructuary in SCPI<\/strong> allows a company or individual to boost their income over a short period, while the bare ownership shares are held by a third party or children.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>FAQ: Your questions about dismemberment<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Q: How is the value of the usufruct estimated?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A: We use a tax scale (Article 669 of the French General Tax Code) based on the age of the usufructuary. For example, if you are between 61 and 70 years old, the usufruct is worth 40% and the bare ownership 60%. The younger you are, the &quot;cheaper&quot; the bare ownership is to transfer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Q: Is a notary mandatory?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A: For any real estate, the notarial deed is essential to publish the transfer strategy for the land registry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Q: What is cross dismemberment?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A: Often used between cohabiting partners or civil union partners, it allows each to be the bare owner of one half and the usufructuary of the other, guaranteeing the survivor to remain in the premises no matter what happens.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Balmont Conseil: Your facilitator in <a href=\"https:\/\/balmontconseil.com\/en\/ingenierie-patrimoniale\/\">wealth engineering<\/a><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The division of ownership is a <strong>complex financial arrangement<\/strong> who cannot tolerate improvisation. At <strong>Balmont Conseil<\/strong>, We support you every step of the way:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Audit of your real estate assets<\/strong> and financial.<\/li>\n\n\n\n<li><strong>Simulation of the calculation of gift taxes<\/strong> to optimize your tax savings.<\/li>\n\n\n\n<li><strong>Connecting and coordinating with the notary<\/strong> for the drafting of legal documents.<\/li>\n\n\n\n<li><strong>Long-term monitoring<\/strong> managing your split assets.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Don&#039;t suffer the consequences of inheritance tax, plan for it.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Schedule an appointment with Alexis Sagnier for a personalized study of split of ownership.<\/p>","protected":false},"excerpt":{"rendered":"<p>\u00ab Alexis, j&rsquo;aimerais donner un appartement \u00e0 mes enfants pour r\u00e9duire leurs futurs frais de succession, mais je ne peux pas me permettre de perdre les loyers que je per\u00e7ois. Comment faire<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":65,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-277","page","type-page","status-publish","hentry"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/comments?post=277"}],"version-history":[{"count":2,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/277\/revisions"}],"predecessor-version":[{"id":1144,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/277\/revisions\/1144"}],"up":[{"embeddable":true,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/65"}],"wp:attachment":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/media?parent=277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}