What is the report value of a property acquired with gifted money?

The principle

In the context of an inheritance, each heir must "bring back" i.e., return to the mass that will be used to calculate each person's rights (calculation of each person's reserved share and the disposable portion) all property they received during the parents' lifetime.

Exclusion of customary gifts

Naturally, it will not be a question of counting trouser buttons or gifts given for Christmas or birthdays, for example. Article 852 of the Civil Code provides that such gifts should not be brought back into the estate. However, discussions may arise when the gifts exceed the ordinary somewhat: the judges will then assess whether the gift is consistent with the habits and financial situation of the donor (for example, a gift of a motor vehicle made by a millionaire may be qualified as a customary gift not subject to clawback).

The question of the use of donated funds

The question arose regarding the value of a real estate property for which an heir acquired the bare ownership and their parent (father or mother) acquired the usufruct. In a ruling of October 17, 2019, the Court of Cassation indicated that in such matters, the heir who benefited from the sum of money to acquire the bare ownership of a property must report to the estate the value of the property in full ownership to the estate of their donor parent.

In conclusion

Donating a sum of money deserves careful attention in practice because if the mechanism is not well adapted to the specific situation of the donor and the donee, the mechanism of clawback for inheritance purposes can lead to unfair situations.

Real estate construction