During your lifetime, you may make a donation to your loved ones. This is a contract where you transfer property to another person. In this transaction, there are you (the donor) and your beneficiary (the donee). It’s like a will, but the big difference is that it’s all done while you’re still alive. However, care must be taken with the donation.
Several conditions to be respected To qualify for a donation, you must have the capacity to give, your donee must be able to receive and both parties must agree. So, if one of them is incapacitated, the donation cannot take place.
You can choose your beneficiary freely. He may or may not be a family member. The family link is therefore not mandatory. You can make a manual donation that does not require the presence of a notary. However, depending on the property to be bequeathed, the intervention of the notary is preferable, even mandatory.
What goods can you give? Absolutely anything, whether it is a personal property (e. g. money, car, furniture, object of any kind, business) or a real estate property (apartment, house, cottage). Some goods are subject to taxation and others are not. No taxes applied if it is cash, but there is a tax for an investment, REER, real estate, firm and income-generating property.
Types of donations The most common donations are donations between spouses, grandchildren and sharing. Between spouses, you can give your spouse to help him or her before the succession.
If you give to your grandchildren, it is a grandparent/grandchildren allowance. In this way, you will pass on a larger part of the estate to his family. A shared donation is preferable if you have several children. It determines the value of the donated property on the day of the donation. This helps to avoid misunderstandings and create family conflicts.
Notarial deed of donation A few donations require the presence of a notary: real estate, by marriage contracts, etc. Usually, a very large donation requires the presence of a legal expert. But in real life, it is always better to consult a notary for any donation.
Consequences of donation The reason why it is better to consult a notary is that the donation is irrevocable. Once it is done, you can’t go back. Some conditions may cancel a donation, such as a charge or condition that has not been met or if there is ingratitude from the done towards you.
In all cases, consult a notary to make your donation under the best possible conditions.
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