The motives of grandparents wishing to help their grandchildren are many. They do not change the rules: 31,865 euros per donor, a new gift possible every 15 years, an adult beneficiary and a donor under 80. For larger assistance, the family cash gift changes scale. Each grandparent may give up to 31,865 euros every 15 years, free of gift tax.
The most common arrangement remains the customary gift, tied to an event. It covers presents given for a birthday or for Christmas, on the occasion of an 18th birthday, the baccalauréat or a communion.
These gifts are not taxable donations that must be declared, so long as they remain linked to the event. They must not impoverish the grandparents either, given their income and assets.
No flat amount is specified for these gifts. Only the grandparents’ income and assets make it possible to judge whether they are impoverishing themselves or not.
Grandparents may provide financial support to their grandchildren free of gift tax, provided they distinguish the customary gift from the family cash gift.
The formality follows the payment. This gift must be declared to the tax authorities within the month after it is paid, a deadline that does not apply to customary gifts that remain untaxed.
The circle of beneficiaries is not limited to grandchildren. It includes the child, the grandchild and the great-grandchild. In the absence of direct descendants, a nephew may also receive the gift.
The condition is twofold and applies at the time of payment. The donor must be under 80. The beneficiary, for their part, must already be an adult.
The stakes are practical as well as fiscal. Assistance regarded as natural within families changes regime according to its amount, the event that justifies it and whether or not it must be declared.