It is possible to donate your assets during life. This way you can transfer assets to your children and other loved ones. It may be financially interesting to transfer assets during your life instead of having them inherite it after your death. You can transfer assets in various ways. I can inform you which form suits your personal situation best.

When you decide to donate, you will be faced with gift tax, in addition, the donation can also affect your inheritance. You can donate a certain amount tax free every year. The amount of this exemption depends on three factors:
– the relationship with the recipient;
– the conditions of the donation; and
– the value of the donation. If the value of the donation is higher than the exemption that applies, you or the recipient must pay gift tax.

Gift and inheritance tax

Will you die within 180 days of the donation? The tax authorities will view a donation as part of the inheritance. Inheritance tax is due concerning the gift. The paid gift tax may be deducted from the inheritance tax. By donating during your life, you can reduce the inheritance and automatically also the amount of inheritance tax to be paid.

Donation on paper

You can also make a donation without actually transferring money. This is called a gift on paper or under dept recognition. This is sensible if you do not want or can not donate cash. This can be the case, for example, when the money is in investments. A donation on paper is recorded at the notary. The money can, unless you decide otherwise, only be claimed after your death.

Reoccurring gifts

You can also decide to donate assets to a charity that has been designated as a public beneficial organization. If the donation is a reoccurring gift with a minimum period of five years. This donation is recorded in writing in a donation agreement. The advantage of this is that your donation is fully deductible from your personal taxable income. This means that you will get a part of your donation back via the tax authorities. The tax benefit depends on your income.

If you would like to discuss your situation, please feel free to contact me via +31 6 80 10 10 14 or send an email to susan@nassette.nl.