Legacies, Life Insurance & Philanthropy

A gift, known as a manual donation, can be made in cash or in kind (movable or immovable property). Any association can receive a donation free of charge, without having to ask for authorization.

Not all associations can receive donations. Only those falling into one of the following categories are authorized to receive them without prior authorization:

• Associations of general interest declared at least 3 years ago of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature, or contributing to the enhancement 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 which have accepted a donation or bequest before that date
• Associations in Alsace-Moselle registered in the register of associations
• Associations and foundations recognized as being in the public interest
• Religious associations and public establishments in Alsace-Moselle
• Approved family association unions

In memoriam donations, 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 €1,000. 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
an association or foundation recognized as being in the public interest. This donation (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, an inheritance 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.

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 gifts. 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 causes of hunger in the world. The funds you 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 channels for collecting donations, but not all associations are authorized to receive all types of donation. We recommend that you contact the organization for which you wish to make your donation to find out all the terms and conditions that apply. This will help you choose the most suitable channel.

Any association is authorized to accept donations in cash or kind, without special authorization. So you’re free to choose the one(s) that interest(s) you.

A legacy 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 legacyt, 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 entitled to receive bequests without special authorization:

• Associations of general interest declared at least 3 years ago of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature, or contributing to the enhancement 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 which have accepted a donation or bequest before that date
• Associations in Alsace-Moselle registered in the register of associations
• Associations and foundations recognized as being in the public interest
• Religious associations and public establishments in Alsace-Moselle
• Approved family association unions

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 donation, and which pursue an exclusive charitable aim (foundation or congregation).
• Gifts 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 donations. 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.

If you wish to leave a legacy 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 and 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 between an individual (the policyholder) and a financial intermediary (a bank or insurance company). The term “insured” is also often used in the contract. In fact, it refers to the person whose death determines the payment of capital by the insurer. Generally, the policyholder and the insured are the same person.
When the policy is taken out, the insured must designate the beneficiary of the contract, i.e. the person who will receive the capital sum in the event of the insured’s death. The beneficiary can also be a legal entity (association or foundation).
Through one-off and/or regular payments, life insurance makes it easy to build up capital over time, to be paid out to the policy beneficiary (a person, an association, etc.) in the event of the policyholder’s death.

You can designate a beneficiary in a number of ways: by letter, by rider to the policy, by an entry in the policy signed by the policyholder, or by will or notarial deed. In the absence of a beneficiary clause, the policy’s assets revert to the policyholder’s estate, and are subject to the applicable taxes. It is therefore crucial to designate the beneficiary(ies) of the policy with the utmost precision and without the slightest ambiguity.

If you would like Action contre la Faim to appear on your policy, simply apply to the organization where you took out the policy, and indicate “Action contre la Faim” in the beneficiary clause, followed by the address of our head office: “102 rue de Paris – CS 10007 – 93558 Montreuil Cedex”.

It is possible for the same person to open several life insurance policies. What’s more, there is no ceiling on payments. This makes life insurance a relevant and simple solution for preparing various projects over the short or long term. When it comes to passing on your estate to different beneficiaries, life insurance allows you to name a single beneficiary instead of several on the same policy. This can be more advantageous, and also enables you to maintain a certain degree of discretion with regard to your personal wishes. Last but not least, having several contracts optimizes the taxation of surrenders.

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 settling the policyholder’s estate, and therefore does not form part of the estate assets.

Gains generated by the contract may be taxed at the income tax rate, or at the taxpayer’s option, at 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 taxation. Withdrawals between four and eight years are taxed at a lower rate. After eight years, the subscriber benefits from an annual allowance, enabling 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
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 you open your contract, you designate by name the beneficiary in the event of your death (usually yourself), as well as the beneficiary(ies) who will receive the funds in the event of your death, without any limitation. If you wish, you can stipulate a different distribution of the capital among the beneficiaries.

Even if you have already taken out your life insurance policy, you can change the name(s) of the beneficiary(ies) of your choice at any time by means of a rider. So, if you want Action contre la Faim to appear on your policy, all you have to do is apply to the organization where you took out the policy, and indicate “Action contre la Faim” in the beneficiary clause, followed by the address of our head office: “102 rue de Paris – CS 10007 – 93558 Montreuil Cedex”.

There are 3 ways of doing this:

• You mention the existence of this life insurance policy in your will. Upon your death, the notary will promptly inform us. 
• The insurer will contact us directly on your death.
• You inform us of the existence of this provision. Once we have been informed of your death, we will contact Agira, the organization responsible for finding life insurance policies in the event of your death, who will provide us with the details.

Notification of 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 rapidly 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.