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How to prepare the future of his children?
A passbook for the first expenses
Le A booklet provides a financial cushion for children, since the account is funded from an early age and will be used for their first “big expenses” (driver’s license for example). Another advantage: you can withdraw the money at any time and at no cost.
No need to compare rates in the different banks: it is the same everywhere (0,75% with a ceiling of 22 euros in 950).
Note: the young booklet (from 12 to 25 years) offers a more interesting rate (from 1% to 2,75% depending on the bank), but is capped at 1 euros. It is mainly used to make young people autonomous in their management of money.
A housing savings plan, for their access to property
When the parent wishes to contribute financially to the purchase of the housing of her child, savings acquired on a Savings housing plan (PEL) guarantees des borrowing rate more interesting. This savings must be used for the purchase of real estate, 4 to 10 years after having taken out the PEL. The payment limit is 61 euros. The PEL is an investment remunerated at 200%.
Save for the future
Le life insurance contract allows build up capital for your child, without payment limit, in a fairly flexible way. After a period of 8 years, beneficiaries can earn interest without tax. In the event of death, the beneficiary has no inheritance tax or taxes to pay.
Prevent accidents of life
For 15 to 30 euros per month for a family, the life accident insurance contract (signed with a bank or insurance) guarantees a compensation in the event of permanent disability from 5 to 30% of a family member affected by an accident of life. The amounts paid are variable, depending on the contracts and the family situation.
In addition, those under the age of 60 whose medical file does not contain anything serious can take out a death insurance which protects their families in the event of death.
Namely: you can compare the different offers provident and insurance contracts, offered by banks and insurers on the web, or through the services of a broker. Before subscribing, check that you are not already covered by your other insurances (health, housing, etc.).
Give your money or property to your children during your lifetime
This is the best solution to prevent your descendants from paying taxes on your savings or your assets. Several possibilities :
– The donation simple ( donation-sharing when there are several children) offers the possibility of giving each child every fifteen years 31 euros (and up to 865 euros extra thanks to tax deduction).
– Allow your child to enjoy your property (cede the usufruct), and therefore to rent it and derive additional income from it (or to inhabit it). The fees to pay on this operation are high, but tax deduction also.
– Donate your property in bare ownership, that is, you always enjoy it, but when your children pick it up, they have no rights to pay.
– Constitute a civil society : parents create a civil society to which they bring real or movable property, and give their children parts of civil society. Advantages: lower rights to pay than with donation, fewer disappointments concerning the devaluation of goods, the assurance of taking advantage of abatements by spreading the transmission over time.