Leave a legacy, donation, life insurance | Enfants du Mekong

Leave a legacy, donation, life insurance

What are the different sorts of legacies?

The universal legacy: you give all of your patrimony among the part that you dispose of, meaning after deducting the parts that might go to your heirs. 

The legacy with costs: you might be interested in it if you do not have direct heirs and wish to donate to a person of your choice. You give all of your goods to Children of the Mekong. The association then takes care of giving back without fees and without expenses to the person of your choice the entire sum that you wish to give her. This type of legacy is regulated by the French Law.
 
 

These are different types of donation:

Donation in full ownership: it is the most used option. You give a good in an absolute and exclusive way.

Example: Miss E wants to give her jewelries to Children of the Mekong, that are worth 15 000 euros. After this donation, she will get a 10 000€ reduction of her income tax, through the five following years.

Donation of bare ownership: you donate a good but the person of your choice can use it until the day he or she dies.

Example: M. D owns a flat that he wishes to donate to Children of the Mekong, but he cares for his old aunt that lives there. By donating to the association this flat in bare ownership, he allows his aunt to live there until she dies. He gets a 66% tax reduction, limited to 20% of his taxable income, that can be postponed to the five following years. If his flat is worth 150 000 euros, he will get a 99 000 euros reduction. If he taxable income is 100 000 euros, this reduction is limited to 20 000 euros each year for five years. Thus he can benefit from a 20 000 euros’ tax reduction each year for 5 years. Thus, he can benefit from a 20 000€ tax reduction for five years and a 19 000 euros tax reduction the last year. 

 

The temporary usufruct donation: 

It is a notarized act that gives, during a determined amount of time of at least three years, the usufruct (income or use) of a movable asset or of a real asset. The goods that are under a temporary usufruct donation are excluded from the ISF tax base

Example: Miss L makes a temporary usufruct donation of rents from the houses that she owns and rents. By donating these rents, the house is excluded from the ISF tax base and her whole patrimony is under the tax threshold.

The universal transfer of assets: you give a part, a quote part of the available share (a quarter, a third, a half), or else another category of goods (all of the movables assets and the real estate assets).

Example: M. N has given to Children of the Mekong 15% of his real estate goods (15 000 euros).

Legacy by particular title: you give one of various goods, individually determined in your patrimony.

Example: Miss L has made a legacy by particular title of 50% of her goods to various charities. Among them is Children of the Mekong, that received 7 000 euros.

 

Marthe Boyancé





Any question or queries ?

Marie-Gabrielle Pîrnay

mgpirnay@enfantsdumekong.com

+ 33 1 47 91 75 22