Anticipate your estate with a gift of SCPI
SCPIs (Sociétés Civiles de Placement Immobilier) offer many advantages for anticipating one's succession and avoiding possible conflicts, particularly through donations.
Giving shares to relatives allows you to optimize, to the nearest euro, the deductions on gift taxes. However, certain precautions must be taken beforehand.
Donation of SCPI units: how does it work?
Article 931 of the Civil Code specifies that "all deeds involving inter vivos gifts shall be executed before a notary". The donation of SCPI shares, in usufruct as well as in bare ownership, therefore requires a notarial act. The notary's fees, also called emoluments, vary according to the value of the donation. In 2021, for a donation of money or immaterial goods, the rates range from a minimum of 0.479% (more than 60,000 euros) to a maximum of 2.322% (less than 6,500 euros), while for a shared donation or a donation between descendants and ascendants, they range from 0.998% (more than 60,000 euros) to 4.837% (less than 6,500 euros)
However, some of your heirs, known as "reservataires" (descendants or spouse in the absence of descendants) are entitled to a minimum share in your estate. It varies according to your marital status and the number of children. For example, if you have an only child, half of your assets should go to him/her, if you have two, each should receive one third of your assets. On the other hand, you can pass on the remainder, called the "available portion", as you see fit. It is important to respect the share due to your heirs with right to reserve; otherwise, they could challenge the part of the gift that exceeds the available share. To avoid this, consult your notary.
Why make a donation of SCPI units?
SCPI units are easier to pass on than directly owned real estate. Since SCPI units are easily divisible, you can give an equivalent amount to each of your heirs. In addition, you can optimize, to the nearest euro, the allowance on gift taxes granted by the tax authorities. Renewable every 15 years, it is set at 100,000 euros between parents and children and 31,865 euros between grandparents and grandchildren.
This information is a simple summary of the procedures for transferring SCPI units by way of donation. It is provided for general information purposes. We recommend that you consult your usual advisor or notary in order to study your specific situation.
Did you know that? With the dismemberment of property, you can transmit during your lifetime while benefiting from the income of your investment. To do this, you simply give the bare ownership of your SCPI shares and keep the usufruct.