The law allows spouses in a reconstituted family to make a single shared gift.
The shared gift allows someone to divide up assets during their lifetime and so initiate their succession in advance.
This is an irrevocable act, so the donor(s) will not be able to change the donation later. The shared gift means that the donor irrevocably relinquishes the assets in question.
The shared gift is obligatorily the subject of a notarial legal instrument.
Conditions of validity
To be valid and accepted as such during the succession of donors, the shared gift must meet the following two conditions:
– each descendant must have received and accepted a portion;
– each of the descendants must receive at least the equivalent of their hereditary share.
Taxation of the shared gift is advantageous since the duties are calculated after an allowance of 100,000 euros is deducted from the share of each of the children.
The assets transferred will only be taxable beyond this amount. The possible payment of duties must be made at the time of the donation and not at the succession.
Marie and Jérôme have two children, Amélie and Alexandre.
Jérôme has a son from an earlier relationship, Lucas.
Marie also has a child from her first marriage, Tom.
The assets of Marie and Jérôme are as follows:
Joint assets: 300,000 euros
Jérôme’s own assets: 30,000 euros
Marie’s own assets: 60,000 euros
That’s a total of 390,000 euros.
Jérôme gives his three children his share in the joint assets and his own assets, or 180,000 euros (150,000 + 30,000). Therefore, the shares of Amélie, Alexandre and Lucas each amount to 60,000 euros.
Marie gives her three children her share in the joint assets and her own assets, i.e. 210,000 euros (150,000 + 60,000). Therefore, the shares of Amélie, Alexandre and Tom each amount to 70,000 euros.
Finally: Amélie and Alexandre each receive assets worth 130,000 euros. Lucas will receive assets worth 60,000 euros. Tom will receive assets worth 70,000 euros.
The value of the assets previously given is compulsorily re-evaluated on the day of the shared gift.
Reference text: Article 1075 et seq. of the French Civil Code
Article 778a of the French General Tax Code