Inheritance: Benefits of intergenerational life insurance

Life insurance, as we know it, is a powerful asset tool for passing capital to your children and grandchildren, excluding inheritance tax or at lower tax amounts, especially at the time of death. When the bonus was paid before 70 yearsWhen On wedding anniversary, upon the death of the policyholder, each beneficiary is entitled to an unlimited number of rights, in fact up to € 152,500 for free.

But what is not well known is that contracts can be used to transfer capital during his lifetime, not necessarily when he dies. This is the meaning of so-called “intergenerational” life insurance.

Who can sign an intergenerational contract?

Gilles Belloir, CEO of, explains, “Grandparents who want to ultimately boost their grandchildren and take the lead on a regular basis to optimize heritage transmission.” .. Common concern: Sending money to minor offspring while temporarily maintaining control, or at least some visibility into the life insurance policy receiving this donation.

As a record, as part of a manual donation, each grandparent became satisfied every 15 years, up to € 31,865, without the right to pay each grandchild.

Therefore, this approach is very different from the one that consists of long-term supply of Libre A or a home savings plan in the name of a grandchild within the usual gift framework. In this case, the amount deposited can be recovered for personal needs by minors when circumstances change (divorce, family disagreement, etc.) without permission or control from anyone. It is inevitably managed by the parents of a minor who knows it. ..

What are the characteristics of this type of contract?

Intergenerational life insurance can be sold to the public in the form of packaged products. More generally, these are actually “classical” contracts, either on the invoice side (payments, administration fees, arbitration, etc.) or on the investment instrument proposal (funds in euros, account units). Even if it does, it has the same parameters as any other contract. , Etc. or management method.

Except for one “big” detail, you need to attach an additional agreement that looks like a three-page or four-page document, pre-printed, and the terms vary from company to company. Here, unlike the notarial gift certificate, we will talk about private contracts.

This additional agreement will allow formalization of manual gifts, but above all, will ensure the terms of life insurance policy management and, in the long run, the terms of provision of capital and its benefits. For Guillaume Pietrski, Offer Director of BNP Paribas Private Banking, this type of document “meets the needs of most clients.”


Declaration of manual donation was recorded in 2020 Source: Ministry of Economic and Fiscal Recovery

In order to fully complete this loop of manual gifts, the insurance company must file this manual gift with the tax authorities by completing and sending it within the next month as part of its obligation to advise. I have to remember that.Self fan formOh 2735 to the department service of the registration of the place of residence on which the grandchildren’s parents depend (online declaration is not possible here).

How about your subscription?

Grandparents sign the life insurance policy enrollment form they want to open in the name of their grandchildren, and then, within the framework of the Assistant Agreement, select the conditions for managing manual donations. If the grandson is still a minor at that time, his parents (as a statutory agent) are also required to be signatories to this additional agreement.

On his side, the minor is a subscriber and is insured for a life insurance policy. On his majority or at the latest his 25th birthday, he can certainly get a certain amount of capital, but he can also have a tax envelope. The contract was signed at least eight years ago. This is because some of the interest received can benefit from a reduction of € 4,600 per year. The beneficiary clause of his contract must indicate “my legal heir” (father and mother, other descendants, etc.) and can only be changed if the number of donors reaches a majority.

What is included in the annex agreement?

First, a clause prohibiting the disposal of invested funds and interest until Donnie is 18 years old. This temporary capital unavailable period also applies to minor legal representatives. In practice, you cannot request in advance, buy back all or part of the contract, or pledge it as collateral without the prior consent of the donor.

Second, the Assistant Agreement includes contract management clauses. This is usually provided by the donor himself (or two grandparents, if applicable), allowing the donor to monitor the donation and possibly make it for years. Required operations: Select and arbitrate investment methods (euro, account unit, SCPI, etc.), change management methods (free, delegated, etc.), or change management options (safety, balance, dynamic, etc.). ).

If the provisions for temporary availability of funds are amended after the statutory adulthood (and within an additional 7 years), the existing prohibitions can be continued. As an exception, adult Donnies may be empowered to manage the contract themselves with the formal agreement of the donor or third party administrator (which may be Donnie’s father or mother). I have. Like a third party who needs to provide contact details in the attached agreement if the donor dies.

It should be noted that standard annexes generally do not provide for the traditional return of funds to donors in the event of Donnie’s premature death prior to Donnie’s contract expiration. Morgane Nedelec, Manager of Wealth Customer Relations and Experts at Macif, explains:

Are there any restrictions?

Today, even though almost all contracts qualify for this type of device, their management is often more complex than you might think. With exceptions, these contracts cannot be managed online and require the signature of Donnie’s parents for day-to-day operations.

Therefore, Gilles Belloir said, “In the absence of a single subscription payment that quickly saturates the deduction for manual donations, payments for his income and assets that can be cumbersome to manage and even pose. Every time I point out that I need to ask the donor a question. Sometimes problems occur. “