There is not two taxable mutations but one

The new tax act aligns the civil law innovations, including donations made directly to the benefit of the grandchildren, what are the practical details

The succession Act allows effective January 1 these generational donations-partages by skip legal obstacles. The amending Finance Act for 2006 publication comes to equip these donations to a suitable tax system. The operation consists of a direct transmission of the grandfather to the grandchild. In practical terms, of the child of the intermediate generation joining the transgenerational donation will not fiscally equated with an indirect gift between himself and his own children. There is not two taxable mutations but one. Take the example of a grandfather who is considering a donation to her two children Henry and Patrice. Patrice, who had two children, Nathalie and François, agrees that they receive the goods given in its place. Nathalie and François will benefit each of an allowance of 30,000 euros and will be assessed at the rate applicable in a direct line.

Another innovation, the tax law also took note of the establishment of a new deal on future succession.

This is the so-called waiver of action reduction from an excessive liberality, the "family compact". Example: an officer decides to give his company to one of its employees, as her children do not wish to take his estate. With the agreement of the mandatory heirs, this gift is now possible. If the gift that the Business Manager to its employee exceeds the available amount and thus violates the reserve of the children, they may relinquish their reduction action against the liberality which will thus produce its full effect. Renunciation of children will not be considered a taxable indirect donation to the benefit of the beneficiary of the excessive liberality.

Has the legislature not clarified the regime of the donations-partages in blended families

Yes, it is now part of the General Tax Code donation by a father or a mother to a child of a first bed of the property of a second community will be taxed at the rate in direct line on the whole of the value of property given. The other spouse will intervene to give his consent to the disposal of common property without cofunder.

Has the succession act not introduced the possibility of giving the same property to two successive beneficiaries

The reform introduced the so-called donations "gradual." They allow a person to give property to a first recipient, for example a disabled child. Support to keep the property and to transmit to his death, to a second beneficiary. As a first step in the realization of the gift, the first beneficiary will pay mutation on the property rights given. At his death, the assets transmitted will be taxed according to the degree of relatedness between donor and recipient's second. The applicable tax regime and the taxable value of the property passing on the second beneficiary will be determined at the date of death. However the duty paid by the first donee will be charged on those owed by the second recipient on the same property.