Estate planning and donation strategies in France

In France, making donations after the age of 70 can serve as a strategic tool for estate planning, helping to organize the transfer of assets, reduce future inheritance taxes for heirs, and mitigate family disputes.

Legal tax allowances for donations can be renewed every 15 years. For example, parents can gift up to €100,000 to each child, while grandparents can gift €31,865 to grandchildren. Using mechanisms such as dismemberment of ownership allows donors to transfer assets while retaining the right to use them or receive income from them.

Formalizing manual gifts through declaration is crucial to establish a legal record and trigger the 15-year period required for tax allowance renewal. Failure to declare such gifts can lead to complications during the succession process, as tax authorities may include gifts made within 15 years of death in the calculation of inheritance duties to ensure allowances have not been misused.