What is a shared donation?

Donation-sharing is defined by article 1075 of the Civil Code.
Donation-sharing is an act by which a person (the donor) transmits assets from his assets by distributing them as soon as he is alive to one or more persons (donees).

Key benefits:

  • Assets are not subject to inheritance.
  • The value of the goods is fixed at the date of the act, optimizing the operation.
  • Possibility of reincorporating donations prior to the act.
  • Can be carried out transgenerationally, making it possible to transmit directly to grandchildren.
  • Compatible with business transfer and the Dutreil Pact, making it possible to optimize the transmission by freezing the value transmitted.
  • Possibility of rewarding a third party (employee or partner) in the context of a business transfer.

Legal and fiscal framework:

  • Article 1076 of the Civil Code: the donor may make the donation and the division by separate acts, provided that both are involved.
  • Decision of the Court of Cassation No. 12-25681 of 20/11/2013: any partial allotment of the co-sharers under undivided law may result in a total reclassification of the donation-sharing into simple donations.

Types of gift-sharing

Ordinary gift-sharing

Ordinary donation-sharing consists in distributing the assets between the heirs of the same generation (children for example).
It allows certain heirs to be rewarded with particular advantages, the assets transmitted are not subject to inheritance and the value of the assets is fixed at the date of the act, offering fiscal and asset predictability.

Key reference: Ministerial response Marchand No. 34361 dated 11/05/1981: when the assets are not distributed in proportion to the theoretical rights of the heirs, the transfer tax is calculated on the total gross value of the assets donated, and not on the value of the lots awarded to each heir.

Transgenerational donation-sharing

Transgenerational donation-sharing makes it possible to transmit directly to descendants of different degrees (children and grandchildren, for example).
It makes it possible to skip a generation, optimizing the transmission of assets and the application of tax allowances.

Key reference: Article 784B of the CGI: transfer duties are paid according to the relationship between the donor and the allotis descendants.

How does a donation-sharing process take place?

  1. Inventory and valuation of assets: identification and estimation of the value of each asset (real estate, financial, company shares).
  2. Determination of beneficiaries and distribution: fixing the lots and specific advantages.
  3. Drafting the act: before a notary, essential to secure legal and fiscal validity.
  4. Reincorporation of previous donations (if applicable).
  5. Transmission and follow-up: updating of heritage documents and adaptation of the global strategy.

FAQ — Frequently asked questions about donation-sharing

Can I make a transgenerational donation-sharing?

Yes, it allows you to transmit directly to grandchildren or great-grandchildren, with transfer taxes calculated between the donor ascendant and the alloted descendants.

Do assets fall outside the inheritance relationship?

Yes, unless an incorrect distribution or a dispute occurs.

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What tax benefits can I get?

  • Frozen value of the goods transmitted.
  • Optimization of equality between heirs through the reincorporation of previous donations.

Do you have to go through a notary?‍

Yes, to guarantee the legal and fiscal validity of the transaction.