Other ways to pass on your assets: bequests, life insurance, and temporary donations of usufruct

Bequests: transferring assets without inheritance tax

Leaving a bequest to Entrepreneurs du Monde allows you to transfer all or part of your estate to the association, which is exempt from inheritance tax. This means that your entire estate will be allocated to our programs, without any additional tax deductions.

What are the tax benefits?

If you leave a bequest of €100,000 to an indirect heir, they will have to pay 60% inheritance tax on it.
Your heir will pay €60,000 to the government and will therefore only receive €40,000.

If you leave a €100,000 bequest to the Entrepreneurs du Monde Foundation and ask it to pay 40% of the amount, net of fees and taxes, to your heir:

• Your heir will receive €40,000.
• Our Foundation will pay the 60% tax on the €40,000 paid to your heir;
• Our Foundation will have €36,000 at its disposal.

Life insurance: an advantageous tool for transferring assets

Life insurance is a contract that allows you to designate one or more beneficiaries. In the event of death, the capital is paid directly to the designated beneficiaries, often without going through the estate. This can enable a quick and tax-efficient transfer of assets.

What are the tax benefits?

Premiums paid before age 70:
Allowance of €152,500 per beneficiary, then taxed at 20% up to €852,500 and 31.25% above that amount.

Premiums paid after age 70:
Overall allowance of €30,500 (all contracts and beneficiaries combined), then taxed at 20% up to €700,000 and 31.25% above that amount.

Temporary Usufruct Donation (DTU): providing support while optimizing your tax situation

A temporary donation of usufruct consists of temporarily transferring the usufruct of an asset (for example, rental income from real estate) to Entrepreneurs du Monde, while retaining bare ownership.

Tax benefits:

Income tax:
The income generated by the property is attributed to the association, which reduces your taxable income.

Real estate wealth tax (IFI):
The value of the property temporarily donated in usufruct is excluded from your taxable assets for the duration of the donation, which can reduce or even eliminate your IFI.

Conditions:

• The deed must be drawn up by a notary.
• The duration of the donation must be determined (for example, 5 or 10 years).
• The property must be allocated to a cause of general interest, such as the Entrepreneurs du Monde Foundation.

How should I proceed?

Contact us: our team is available to assist you with the process.

Consult a notary: to draw up the necessary documents (bequests, life insurance, DTU).

Let us know: so that we can send you the appropriate tax documents.