a bad economic situation by traversing many families has led, in some cases, the parents decide to bring forward part of the inheritance to their descendants, now more than ever in need of assistance to go forward. Consider how to transfer the family home or other property prior to his death through a donation can be an option to consider, especially if you want to avoid potential arguments the time of dividing the inheritance, or if you want to help a child in financial difficulties.
By donating, you can transfer to the children a part of the heritage. But it is not essential that the transmission takes place between family members: donations are also made to friends, foundations or non-governmental organizations. In some cases, donors can benefit from tax deductions, while the receivers are responsible to meet the payment of the taxes levied on the increase of its heritage.
“DONATION: A PERSON ASSIGNS TO ANOTHER A PART OF YOUR estate, WITH THE OBJECT OF HELP”.
the “the INHERITANCE: THE HEIR succeeds THE DECEASED IN THE OWNERSHIP OF THEIR PROPERTY AND DEBTS, TO UNIVERSAL TITLE.”
the “a LEGACY: THE LEGATEE ACQUIRES ONLY SPECIFIC ASSETS AND CERTAIN, WITHOUT being accountable for THE LIABILITIES OF THE INHERITANCE.”
the For donation, it has to be the following essential aspects: impoverishment of the donor (diminution of his assets); enrichment of the receptor (increasing your equity); intention of the donor to benefit one person; and acceptance of the donation by the recipient (donee).
The Civil Code establishes that no one can give or receive, by way of donation, more than what you can give or receive by testament. This is one of the assumptions limiting the transfer of assets to third parties, since it restricts the distribution of the assets to which it ought to be legally compulsory heirs. A father can’t donate all the assets to one of his children because the others are also would be a part in concept of inheritance and would be obliged to respect the legitimate.
Keep in mind that the Civil Code sets an important differentiation to donate a movable good and an immovable. To that effect, if the object of the donation is for furniture, donation may be made verbally or in writing. On the contrary, if the asset donated is property, it is a prerequisite that is based on a public deed.
is The donation can be made “inter vivos” -when it produces effects in the life of the donor – or “mortis causa” -if the effects are once it has died. These latter are governed by the rules established for the probate estate, while donations “inter vivos” are subject to the general provisions of the contracts.
In principle, the donation, as is the case with the rest of the contracts, is irrevocable. However, there are a number of exceptions in which if it should be your revocabilidad: survival or supervenencia of children, ingratitude of the donee, the failure loads of the donee, etc…
For its part, inheritance is the act by which the heir succeeds the deceased in the ownership of their property and debts, to universal title. It is worth noting here the difference between inheritance and legacy, given that the legatee would be the one person that acquires only specific assets and certain, without being accountable for the liabilities of the inheritance.
“IN GENERAL, A DONATION IS MORE COST FISCAL TO INHERIT.”
the “THE TAX BILL OF THE INHERITANCE will DEPEND ON THE AGE OF the HEIR.”
the “THE HEIR is under 21 YEARS OF age HAS A DISCOUNT OF 99% ON THE COST of taxation OF THEIR INHERITANCE.”
The heir succeeds the deceased in his heritage as a whole, active and passive, both in rights and in obligations that are not extinguished by his death, while the legatee only to the property or rights selected by the testator.
They are also different in their responsibilities. To happen the heir to a universal title, both in goods and debts, is liable for the debts of the deceased without restriction, and even with their own property (to not to be accept with benefit of inventory); while the legatee is not liable for the debts and charges of the inheritance, as a general rule. The heir can acquire even goods (and obligations) whose existence is ignored, while the legatee will acquire only the assets and rights that are expressly attributed to it.
The decision to donate a part of our heritage, as can be a dwelling, or to children or leave it in inheritance, it is a matter which is of great importance, since not only must calculate the fiscal costs that it entails the decision, but you also have to consider the legal consequences of the solution adopted.
In general terms, donations are more burdensome that the inheritance for the purposes of taxation, although the cost of taxation will depend on the Autonomous Community where we have fixed our residence, because each of them has developed its own regulations in regard to tax benefits in inheritance and gifts.
From the fiscal point of view, the people who get the gift/inheritance falls to them to pay the tax for the goods they receive (Tax on Inheritance and Donations). The tax is paid by instalments and, depending on the value of the gift/inheritance, applies a percentage more or less high.
In addition to the tax implications, we must consider the legal consequences of our decision, because although in principle, inheriting it is cheaper to donate, we have to ask ourselves what is the best solution. For this reason it is advisable to treat each specific situation and give you a personalized treatment. The donation, even being more expensive, we can get you to agree, because donating allows us to have a greater game, as the donor, for example, can put certain conditions in exchange for the donation; they could get to revoke the donation, as we have seen above.