Donating real estate to your children has many advantages but also potential disadvantages that should be taken into consideration.
In general, the donation of an asset is a free and voluntary act that a donor makes towards a beneficiary with the aim of increasing its assets. There are different ways to make a donation, what can be direct or indirectIn the case of direct donation, you simply go to a notary to ratify the donation of an asset before the law. Indirect donation instead provides that, instead of donating an asset, the beneficiary is given the sum necessary to purchase it.
As regards the taxes to be paid on the donation, it is good to know that if the value of the asset does not exceed one million euros Well yes give good to your childrenthe deed of donation is not subject to any taxation. You only pay a registration tax of 200 Euros if the maximum value of 1 million Euros is exceeded and a stamp duty for documents subject to VAT, equal to 230 Euros.
Advantages and disadvantages of donating to children
These same documents are subject to a registration fee of 90 Euros. As for the notary fees, it’s good to know that they are calculated differently by each professional and, beyond this, they depend on complexity of the donation and in particular from any pending mortgages on the property or other problems. Among the undoubted advantages of the donation of real estate to children there is certainly the fact that you will not have to wait for the will to be opened to take advantage of the donated goods.
But this means that the other heirs could contest the will and demand the sale of the property and a fair distribution of the proceeds. To avoid this problem, which is certainly one of the big ones disadvantages of the donation, it is best to take preventive measures. To do this you will have to do it stipulate to the other heirs a deed of waiver of dispute of the will.
This will ensure that, even if the donation affects the share of the inheritance of the other heirs, the latter will not be able to attempt to take action against the child who inherited the most. However, if the heirs who do not benefit from the donation refuse to sign the deed of renunciation, they will be fine 20 years to request the sale of the donated property.
Another advantage for parents who decide to donate a house to their child consists in the fact that you can buy another house without having to pay the expensive ones taxes on second homes and you can also avoid this way risk of foreclosure by the creditors.
