Liberalities

In memoriam gift, often initiated by the family of the deceased, are becoming increasingly popular as an alternative to traditional flowers, in order to respect the last wishes of the deceased and honor his memory. What’s more, it entitles the donor to a tax reduction of 75% of the amount of the donation, up to a maximum of €2 000. Above this ceiling, the tax reduction is 66%, up to a limit of 20% of taxable income.
 
Beneficiaries of an estate can donate all or part of the inheritance they are about to receive to an association or foundation recognized as being in the public interest. This gift (a sum of money, movable or immovable property) must be made within 12 months of the death of the person from whom they have inherited. With no ceiling on the amount, it entitles the donor to a tax allowance that reduces inheritance costs. While making such a gift is relatively straightforward, it is essential to contact the notary responsible for settling the estate as soon as possible.
 
In contrast, a legacy gift does not require the involvement of a notary. It is a classic gift of all or part of an inheritance, and is entitled to the same tax benefits as a gift in memory of a loved one.

A so-called gift can be made in cash or in kind (movable or immovable property). Any association can receive a gift free of charge without having to ask for authorisation. 

Not all associations can receive donations. Only those in one of the following categories are authorised to receive them without prior authorisation: 

– Associations of general interest that have been registered for at least 3 years and are of a philanthropic, educational, scientific,
social, humanitarian, sporting, family or cultural nature, or that contribute to the enhancement of the artistic heritage, the protection of the natural environment or the dissemination of French culture, language and scientific knowledge. 

– Associations whose sole purpose is assistance, charity or scientific or medical research, declared before 31 July 2014 and which have accepted a donation or bequest before that date 

– Associations in Alsace-Moselle registered as associations 

– Associations and foundations recognised as being in the public interest 

– Religious associations and public establishments of worship in Alsace-Moselle 

– Approved unions of family associations 

The law stipulates that a person may not disinherit his or her nearest and dearest in favor of a third party. A minimum share of the inheritance must go to the heirs known as “reservataires”, such as the surviving spouse or descendants.

The remaining share, known as the “available portion”, can be passed on to a person of your choice or to an association authorized to receive liberalities. If you have no children or surviving spouse, you can pass on your entire estate to the latter. 

Action contre la Faim acts simultaneously on all fronts and on all the causes of hunger in the world. The funds you so generously entrust to us will be used to carry out concrete actions and will be allocated by us according to our most urgent needs. 

There are various donation channels available, but not all organizations are authorized to receive every type of gift. We recommend contacting the organization you wish to support to learn about the specific procedures that apply. This will help you choose the donation method that best suits you. 
 
Which association should you make a gift to? 
Any non-profit organization is allowed to accept gifts in cash or in kind without requiring special authorization. You are therefore free to choose the one(s) that interest you. 

This liberality is a means of transmission that becomes effective on the death of the testator, the person making the bequest. 

Its provisions can be modified or revoked at any time, and can take different legal forms. Depending on the type of bequest, it may concern all or part of the testator’s estate, or a specific asset. 

Similar to donations, only associations belonging to one of the following categories are authorized to receive a bequest without requiring special approval: 

– Public-interest associations declared for at least 3 years and having a philanthropic, educational, scientific, social, humanitarian, sports-related, family-related, or cultural purpose, or contributing to the promotion of artistic heritage, the protection of the natural environment, or the dissemination of French culture, language, and scientific knowledge. 

– Associations whose exclusive purpose is assistance, charity, or scientific or medical research, declared before July 31, 2014, and that accepted a donation or bequest before that date. 

– Alsace-Moselle associations registered in the register of associations. 

– Associations and foundations recognized as being of public utility. 

– Religious associations and public establishments of worship in Alsace-Moselle. 

– Approved unions of family associations. 

Inheritance tax may be levied on bequests, both for the natural persons to whom the bequests are made and for the organizations authorized to receive these resources.  
A total exemption applies to bequests to associations recognized as being in the public interest, when the estate includes one of the following: 
 
– Works of art intended to form part of a collection, monuments or objects of historical interest, books, printed matter or manuscripts 

– Associations that have been registered for at least 3 years on the date of receipt of the liberality, and which pursue an exclusive charitable aim (foundation or congregation). 

– Donations of money or real estate for the purchase of works of art, monuments or historical objects 

– Donations or bequests to cultural associations 

Depending on their status, not all associations are authorized to receive liberalities. Among those that are, there are, for example, associations recognized as being in the public interest, religious associations whose sole purpose is the practice of a religion, or associations whose sole purpose is assistance, charity, or scientific or medical research. We invite you to contact the association to which you wish to bequeath your bequest. 

An association may choose not to receive a bequest depending on its nature, i.e. if its articles of association do not allow it to do so, or if the bequeathed estate is in deficit. That’s why it’s a good idea, if you’re thinking of making a bequest to an association, to get in touch with it as soon as possible to find out whether it is entitled to receive it. 

How do I bequeath my property to a charitable organization? 
If you wish to make a bequest to an association, it is essential to draw up a notarial or holographic will (drawn up by yourself). If you choose to draw up your own will, we recommend that you hand it in to your notary to ensure that it is properly executed. 

A notary is not required to make a bequest. You do need to be very specific about the asset(s) concerned and the beneficiary of your choice in your will. However, we recommend that you use the services of a notary. The notary is responsible for drawing up the will (so that it is enforceable) and for ensuring that your last will and testament is properly executed after your death. 

The association is informed of the death and bequest by friends, family or neighbors, provided they have been informed of the terms of your will. Failing that, it may be the notary. In addition, when we are informed of your bequest project, we contact you regularly by telephone or mail to maintain a regular link and keep you up to date with the association’s activities. 

Life insurance is a contract concluded between an individual (the policyholder) and a financial intermediary (a bank or an insurance company). The term “insured” is also often used in the contract; it refers to the person whose death triggers the payment of the capital by the insurer. In most cases, the policyholder and the insured are the same person. 
When taking out the policy, the insured must designate a beneficiary, meaning the person who will receive the capital in the event of the insured’s death. The beneficiary may also be a legal entity (an association or a foundation). 
Through oneoff and/or regular payments, life insurance makes it easy to build up capital over time, which will be paid to the beneficiary of the contract (an individual, an association, etc.) upon the insured’s death. 

The designation may take several forms: by simple letter, by an amendment to the contract, by a clause filled out in the contract signed by the policyholder, or by a will or notarized act. In the absence of a beneficiary clause, the capital from the policy is reintegrated into the policyholder’s estate and becomes subject to the applicable inheritance taxes. It is therefore crucial to designate the beneficiary or beneficiaries of the policy with the utmost precision and without any ambiguity. 
If you wish to name Action contre la Faim in your policy, you simply need to request it from the institution where you took out the contract and indicate in the beneficiary clause: “Action contre la Faim,” followed by the address of our headquarters: “102 rue de Paris – CS 10007 – 93558 Montreuil Cedex.” 

 
It is possible for the same person to take out several life insurance policies. In addition, payments are not capped. Life insurance is therefore a relevant and simple solution for preparing various short or longterm projects. When planning to transfer assets to different beneficiaries, life insurance allows you to designate a single beneficiary rather than several beneficiaries within the same policy. This option can be more advantageous and also allows for greater discretion regarding one’s personal wishes. Finally, having multiple policies makes it possible to optimize the taxation applied to withdrawals. 

Life insurance is a ‘non-inheritance’ investment, and it is this characteristic that has largely made it so successful. The capital paid out by the insurer to the designated beneficiaries is not taken into account when the policyholder’s estate is settled, and therefore does not form part of the estate assets. 

Gains generated by the contract may be subject either to the income tax scale or, at the taxpayer’s option, to a flat-rate withholding tax, the rate of which decreases the longer the contract is in force. 

Withdrawal (i.e. surrender) before four years entails the highest rate of tax. The rate decreases for withdrawals made between four and eight years. After eight years, the policyholder benefits from an annual allowance that allows him or her to withdraw sums on a virtually tax-free basis. 

 
It’s often said that with life insurance, your money is locked in for 8 years, but this is not true. Your savings are available at any time. In practice, the 8-year period simply corresponds to the policy’s “tax maturity”, i.e. the length of time after which the policy’s tax treatment is optimal. After 8 years of ownership, policy redemptions are not taxed very highly. 

When opening the policy, you specifically designate the beneficiary in the event of survival (generally yourself), as well as the beneficiary or beneficiaries who would receive the capital if you were to pass away, without any limitation. If you wish, you may also specify a different distribution of the capital among the beneficiaries. 
Even if you have already taken out your life insurance policy, you may modify the name(s) of the beneficiary or beneficiaries at any time through an amendment. Therefore, if you wish to include Action contre la Faim in your policy, you simply need to request this from the institution where you took out the contract and indicate in the beneficiary clause: “Action contre la Faim,” followed by the address of our headquarters: “102 rue de Paris – CS 10007 – 93558 Montreuil Cedex.” 

There are three options: 

1_ You mention the existence of this life insurance policy in your will. Upon your death, the notary will promptly inform us. 

2_ The insurer will contact us directly upon your death. 

3_ You inform us of the existence of this arrangement yourself. Once we have been notified of your passing, we will contact Agira, the organization responsible for locating life insurance policies in the event of death, and it will provide us with the relevant information. 

Notification of the death is made by the organization (bank or insurance company) with which the policy was taken out, as soon as the estate is opened. Action contre la Faim then undertakes to quickly forward various administrative documents to the appointed notary, and to work with the notary to ensure that the deceased’s wishes are respected. 

The payment of funds will depend on what is written in the beneficiary clause of the life insurance contract. There are two options: either you contact us to send us the death certificate or send it to the insurance company, which will contact our dedicated team.