There is often a need to transfer assets to the next generation between living persons (inter vivos). Besides the area of corporate succession, this is very important in the transfer of property to spouses or children. If the transfer takes place as a gift with consideration to future succession, this is known as anticipated succession.
Legally complex transfers of property ownership, inheritance and company shares as well as future gifts require notarization, as do waivers of inheritance and compulsory heirship rights. The notary public is your expert assistant here. The sometimes considerable opportunities for tax savings should, however, not divert attention away from the fact that a transfer only makes sense if the donor and recipient are “sufficiently mature” for the transfer of assets and trust one another as much as possible.
When it comes to the question as to whether a bequest should take place as a lifetime transfer or as a testamentary disposition, the respective pros and cons should be weighed up carefully. Firstly, one objection to a lifetime transfer is that the donor loses ownership of the property. According to the law, a clawback is only possible to a limited extent, although under certain circumstances this can be agreed in the transfer contract. On the other hand, a lifetime transfer does offer considerable advantages. For example:
- The transfer of property ownership from parents to children can make it easier for them to set up their own household or lay the foundation for a professional career.
- The provisions of the transfer contract can guarantee that the of the donor’s interests are accommodated.
- Compulsory heirship rights of the recipient as well as those of third parties can be limited under certain conditions.
- Tax exemption amounts for gifts or inheritances can be exploited repeatedly by spreading the taxable transactions over time.
The motives that ultimately lead to a gift of property are just as multifaceted as the resulting structuring options for contracts. For instance, depending on the motivations, the contract can provide for compensation payments to the donor, granting rights of abode, care obligations, etc. There are no limits to the imaginable uses. Of course, here too, the tax repercussions should be checked individually again.
We will draw up a contract that meets your needs and explain the consequences in detail.