Gifts and Inheritance: Notaries' 9 Bold Proposals

Notaries have submitted bold proposals to the government to make the gift tax system more beneficial for individuals and the government.

To encourage seniors to give more while they are still alive, and also to promote donations toward critical issues such as the ecological transition and long-term care, the High Council of Notaries (CSN) has submitted its reform proposals to the government. Here are the notaries’ 9 proposals to boost

1- A tax exemption regardless of family relationship
This tax exemption for any gift of full ownership—even when there is no family relationship between the donor and the donee—would broaden the range of beneficiaries.

2- A tax deduction based on the donor's age
Reinstating a tax deduction mechanism—currently limited to business transfers—would encourage seniors to transfer their assets during their lifetime.

3- An increase in the tax exemption for gifts to grandchildren

Currently, the tax benefit for a gift to a grandchild is 31,865 euros, compared to 100,000 euros for a gift to a child.

4- The elimination of the age requirement

According to Article 798 of the General Tax Code, a specific tax deduction applies to gifts of money made in full ownership, but it is limited to grandparents under the age of 80 who make such gifts to their minor grandchildren.

5- A tax deduction for transfers to a spouse's children

This tax deduction would make it possible to take into account blended families, “which are no less legitimate.” Currently, however, the tax rate applicable to assets transferred to these children is 60 percent of their value.

6- A Reduction in the Right to a Share of Gifts Made Through Incorporation

It would make shared gifts more attractive by reducing the associated tax burden.

7- An exemption from transfer taxes for renovations

The purpose of this measure is to exempt the transfer of a property considered to be energy-inefficient (rated F or G) from tax when the future owner commits to carrying out the necessary work to improve its energy efficiency (to a rating between A and D), while retaining ownership of the property for at least six years, either to live in it or to rent it out at a regulated rent.

8. An incentive to donate to environmentally focused companies

It would allow a maximum of 100,000 euros to be transferred per donor, provided that the amount is invested within six months in environmentally focused companies or in the renovation or construction of real estate that the donor owns, acquires, or commits to acquiring.

9- Setting up an account to provide financial support for a loved one who is dependent or vulnerable

This involves creating a joint account, funded by the family to support a family member with a disability or who is in need of care. This account would be used to cover medical expenses, rent at a medical facility, home modifications, and other related costs; all expenditures would be reviewed annually by a notary.