The donation of money from parents to children in life instead of doing it by inheritance after death has several reasons. Some parents do it to help their children financially and others do it to reduce their taxes.
The donation of money is based on the delivery to another person of an economic amount that is not going to be reimbursed. This amount of money is delivered freely and without any type of interest.
What is the donation in life of parents to children?
Article 618 of the Civil Code establishes that the donation is an act of detachment. Through which a person gives another a good for free and the latter accepts it.
Parents donate goods to their children to help solve their financial problems.
Living donations from parents to children is a good alternative, because they can help avoid arguments when distributing the inheritance. This option is recommended when the parents are clear about what assets to assign to each child.
When parents donate something to their children, they have the possibility of imposing certain conditions.
The donation of parents to their children can be of any type of property, such as: money, land, works of art, jewelry, homes, premises, among others. Depending on the type of donated property, it will be necessary to appear before a Notary Public or not.
How do you make a donation from parents to married children?
The assets donated by parents to married children are exclusive to the children when they are married by community property. In the event that the property donated by the parent is land, premises, an apartment or any other property, it belongs to the child exclusively.
When a donation of money is made from parents to children and after a while the child is encouraged to buy a property with that money. It is necessary for the spouse to present the deed of sale before a Notary to justify that the money with which she is making the purchase is private.
If this process is not done before the Notary, it is assumed that the property purchased belongs to the community property regime.
If you want to distribute your assets to your will, call us.