You may want to please your friends and family by giving a small amount of money for Christmas. Stéphanie Swiklinski, a notary graduate, explains to us that this gesture of generosity is more complicated than it seems.
Is there really a difference between a manual gift and a customary gift?
There is indeed a difference between the two. What is commonly called a manual gift may not be a gift at all! In both cases, it is a question of giving "from hand to hand". Legally, however, it is not the same thing. The manual gift is subject to taxation because it is a taxable gift. It is not really considered as a "small gift", but rather as a donation in its own right. It is therefore reportable to the donor's estate. It will be taken into account when opening the estate and distributing the patrimony among the heirs of the deceased. A customary gift is a gift that is given on the occasion of a particular event. For example, you can offer a piece of jewelry or a sum of money for Christmas. It will always please! It is characterized by its low value and is not to be declared to the tax authorities. This is assessed on a case by case basis by the judge. It is all a question of proportion in relation to the donor's assets. The judge will look at the donor's lifestyle and financial capacity. If you have a pension of €1,000 and you give a car worth €20,000 to your granddaughter for her driving licence, this could be considered excessive and should be declared to the tax authorities.
Why do you have to declare a manual gift?
The simplicity of the manual gift can be a source of trouble if the donor does not respect a few rules. First of all, its validity depends on the agreement of both parties. The donor must do so without any coercion and the recipient must accept the gift with full knowledge of the facts, without being forced to do so.
The manual gift must have a lawful cause (willingness to compensate someone who has done you a favor, proof of a feeling of affection...).
Finally, it must be made within the limits of the "available share" (part of the patrimony that the donor can dispose of as he pleases), and must not infringe on the inheritance rights of the other heirs. On the one hand, by declaring it to the tax authorities, you avoid possible conflicts with the other heirs and on the other hand, you cannot be suspected of concealment.
Note that you will only have to pay taxes if the value of the gift exceeds the tax allowance.
How to declare a manual donation?
The beneficiary of a manual donation has every interest in declaring it to the tax authorities. This allows him to "take date", with regard to the deadline for tax deductions.
To register the manual donation, you simply have to fill in a Cerfa form n°2735 to be sent to the tax authorities within a month or to be registered by notary.
It is also possible to do it online by connecting to his Espace Particulier on www.impots.gouv.fr by entering his 13-digit tax number and his password.
If you fail to declare, if the tax authorities can prove that the donation was deliberately concealed, the duties normally due may be subject to late interest and heavy penalties.
Stéphanie Swiklinski