Joint Donation: The Court of Cassation Tightens the Rules

A popular tool for estate planning and minimizing family disputes, the “donation-partage” allows individuals to distribute their assets during their lifetime while locking in their value as of the date of the deed. However, a ruling by the Court of Cassation issued in July 2025 reiterates a strict requirement: no share may be held in undivided co-ownership among heirs, or else the transaction will be reclassified as a simple gift.

Shared gift or simple gift: a major difference
Ashared gift involves allocating a specific portion (sum of money, real estate, securities, etc.) to each heir by distributing the donor’s estate in a balanced manner. Its main advantage is that it freezes the value of the assets at the time of the deed, thereby avoiding the need to reintegrate their updated value when the estate is settled.
 

Conversely, in a simple gift, the gifted assets are revalued as of the date of death to determine the distribution. Example: If a child received €50,000 at a given time, valued at €100,000 on the date of death, this revalued amount is added back to the estate, which alters the final distribution.
The “donation-partage” therefore helps ensure a smooth transfer of assets and avoid tensions among heirs. However, its legal conditions must still be met.

The Court of Cassation Prohibits Undivided Shares
In its July 2, 2025, ruling, the Court of Cassation confirmed that a “donation-partage” requires “a physical division of the assets among the descendants.” In short: each heir must receive a separate share, without any joint ownership with another heir.
 

This clarification, which builds on a 2013 court ruling, precludes situations in which part of the estate would have been allocated as undivided co-ownership (for example, an undivided share of real property) in addition to an individual share. From now on, a single undivided share is sufficient to reclassify the entire deed as a simple gift.
 

The consequences can be severe: reclassification results in the present value of the assets being reinstated in the estate, which can significantly alter the distribution and reignite disputes among heirs.
 

There is, however, one exception: in the case of an intergenerational transfer involving grandchildren, the grandchildren may receive an undivided share.

A wealth management strategy to be handled with caution
The ruling reminds families and notaries of the importance of strict compliance with formal requirements. Three conditions must be met:
• All heirs must be parties to the deed and receive a share;
• All donees must agree;
• Each share must be individually defined, without joint ownership, except in the specific case of intergenerational transfers.
 

Despite these limitations, the shared gift remains an effective tool for planning an estate, avoiding conflicts, and taking advantage of a favorable tax framework: each parent can transfer €100,000 per child every 15 years, tax-free.
 

However, caution is warranted, particularly when an estate consists of a single piece of real estate that is difficult to divide. In such cases, other solutions—such as a prior sale or the use of life insurance—may be more appropriate.