2023-08-31 11:14:54
The law determines who inherits what when you are gone. And the legislation also sets the tax burden associated with it: the inheritance will be subject to inheritance tax.
But nothing forces you to put up with the standard rules. An arsenal of planning techniques allows you to deviate from it.
We still too often hear arguments explaining why it would be useless to engage in planning your estate or why it would be superfluous to question it once it has been determined. In reality, these are just misunderstandings.
But what are the four most common misconceptions?
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1. Estate planning is only interesting for large estates
Planning can also be interesting for less fortunate people. “Very often, people who engage in estate planning say they do so for tax reasons. But when you scratch a little, you find that the reduction of inheritance tax is not the main motivation“, explain Hannes Casier, lawyer at Argo Law.
“Estate planning allows you to determine in advance who will receive what. For example, people wonder if the family heritage will be well protected: who will inherit if my daughter dies? Her partner or her children?”
Thoughtful planning allows you to deviate – sometimes in a limited way – legal rules regarding inheritance. “Limited” because children and spouse are protected heirs who are always entitled to a minimum share.
“The belief that estate planning is only for ‘mature people’ is wrong. Even at a younger age, fate can strike – in completely unexpected ways.”
Joni Soutaer
Spokesperson for notaires.be
2. There’s no need to plan when you’re young
“Very often people think regarding estate planning when they reach a ‘magical’ age. I sometimes hear people say, ‘I’m 60 and I have to think regarding my estate,'” says Hannes Casier.
“But it’s a mistake to believe that estate planning is only for ‘mature people’. Even at a younger age, fate can strike – in completely unexpected ways. The different types of planning are not limited to physical elements. Young parents, for example, can give directions regarding who will look following their children if they are no longer able to do so themselves.”
“I’m surprised that people wait to plan their succession and often only take this step when the signs of dementia appear. The question then is what is still possible to do at that time? there”, explains the notary Joni Soutaer, spokesperson for notaire.be. “It is better to anticipate this situation by establishing an extrajudicial protection mandate.”
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3. A planned succession should no longer be revised
You’ve already thought regarding your estate planning. Maybe you have already established it.
However, the family, heritage, needs and relationships with children are changing. “I advise young people to review their wealth planning every ten years. For those over 60, it is best to do this every five years. But if an important event occurs in the meantime, it is advisable to revise its planning earlier”, explains Joni Soutaer.
“Wealth planning is not a once-in-a-lifetime event,” confirms Ann Maelfait, a lawyer at Rivus. “There are several times in life when it is in your interest to meet with a wealth advisor or a notary. You must keep track of your assets and your planning according to the evolution of your life and your specific needs. It is always easier to anticipate possible events than to have to deal with them later.”
“Planning should be flexible, as far as possible, so that it can react to a changing situation.”
Hannes Locker
Avocat (Argo Law)
4. It is not possible to review your estate planning
“Keep in mind that a schedule can always be changed. For a will or an extrajudicial protection mandate, you can decide on your own. Pour a marriage contract, you need the cooperation of your partner“, explains Hannes Casier. “Planning must be developed in such a way flexibleas far as possible, in order to be able to react to a changing situation.”
But the law does not facilitate this flexibility. “Donations are encouraged because they are less tax-efficient than an inheritance. But a donation is irrevocable, except in the case of a gift between spouses. Given is therefore given”, explains Ann Maelfait.
“You have to take this into account when considering a donation. By matching the donation of modalitiesone can however create a certain security net. The donor can thus reserve the usufruct and ensure, for example, that he continues to receive dividends from an investment portfolio. But what happens if the usufruct suddenly no longer bears fruit, if there are no more dividends? Or if the children no longer take care of the parents?”
Succession Guide | 10 tools to plan your estate
Take control of your estate. All planning techniques, from donation to protection mandate.Break the myth. Why you should perhaps deviate from the legal rules.
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