Gifting half a property

[fee du jardin]

I want to 'gift' half of my property to my brother, I understand this will incure gift tax.

My quetions are:  How is gift tax calculated? and How do I go about having the deeds changed?  OH and, when one of us dies can it be made possible for the survivor to get the other half?

[Pickles]

[quote user="fee du jardin"]I want to 'gift' half of my property to my brother, I understand this will incure gift tax.

My quetions are:  How is gift tax calculated? [/quote]

See the following website: http://www.paris.notaires.fr/art.php?cID=344&nID=983

which is pretty up-to-date and covers the reductions which depend on your age, relationship with beneficiary, etc.

[quote user="fee du jardin"] How do I go about having the deeds changed?  OH and, when one of us dies can it be made possible for the survivor to get the other half?[/quote]

You need to see a notaire to get the donation notarised, and there may be other issues to consider, eg whether you have any children, etc. Think long and hard before going down this route because you may need to think about who pays the bills in future, not just electricity and gas but revovations/repairs etc.

Regards

Pickles

[giantpanda]

Hi!

I take it this is a French house.

Now you can do this!

But there may be problems at your succession if you have reserved heirs, unless what you give to your brother is within the limits of the " quotité disponible ", because otherwise, he would have to pay a compensation to them when you die.

See here, depending on your family what it represents.

http://www.lesechos.fr/patrimoine/guide/TRA61.html

Now the question of the donation:

The allowance for a brother is 2009 : Euro 15 636 .

The rest is subject to : 45% tax.

But in special cases see hereunder, there is no donation taxes:

• 1. Le frère ou la sœur concerné doit être célibataire, veuf, divorcé ou séparé de corps au jour du décès.

• 2. Il doit être âgé de plus de 50 ans au jour du décès ou atteint d'une infirmité l'empêchant de subvenir à ses besoins.

• 3. Il doit avoir vécu, de façon continue, avec le défunt pendant les cinq ans précédant le décès.

Now you can reduce the tax payable in two ways.

1. You pay the tax yourself, which reduces the donation value, and the donation tax to be paid. ( that is allowed ).

2. It it is possible, you can limit the donation to the nue-propriété of the half house, whilst you keep the "usufruit" - The value of the " usufruit " is worked out according to your age. You can then use that part of the house freely, but not sell it, without hs approuval.

 

And on your death, then your brother " inherits " the usufruit, without that being part of the succession ( all he would have to do, would be to have the registration at the cadastre changed).

Bascially you should talk to a French Notaire.

Yours,

giantpanda

NB. the value of the donation will be made on the value at the time of the donation ( not the purchase value ).

[parsnips]

[quote user="fee du jardin"]

I want to 'gift' half of my property to my brother, I understand this will incure gift tax.

My quetions are:  How is gift tax calculated? and How do I go about having the deeds changed?  OH and, when one of us dies can it be made possible for the survivor to get the other half?

[/quote]

Hi,

 It would be easier to give an answer if you give more details , ie. your age, marital and family situation ,approx. value of the house , and what % of your total wealth it forms.