By Charlotte Reid 
How much money can you pass on to your children or grandchildren after the age of 60 without paying tax?
In brief
- €100,000 can be given to each child every 15 years without being taxed
- €31,865 can be passed on to each grandchild
- The Cerfa 2735 declaration is strongly recommended to secure the donation.
- After the age of 80, certain allowances disappear, making planning crucial.
- Giving bare ownership can reduce taxation while retaining usufruct.
How much can you give without justification after the age of 60?
The transfer of assets, often considered after the age of 60, is part of a family and tax management strategy. In France, legislation specifically regulates cash gifts, authorising manual gifts without justification within certain limits. Above a certain amount or depending on the family relationship, declarations become necessary to avoid any reclassification or taxation.
Allowances: advantageous tax ceilings every 15 years
A manual donation, whether made in cash, by bank transfer or by cheque, is a direct method of transfer with no immediate obligation to declare it. To remain tax-exempt, the following ceilings apply every 15 years:
- €100,000 per parent and per child
- €31,865 per grandparent per grandchild
- €15,932 between siblings
- €7,967 between uncle/aunt and nephew/niece
These exemption thresholds are calculated over a rolling 15-year period, which means that the history of gifts for each beneficiary must be taken into account. Exceeding these limits results in the application of a progressive gift tax scale, hence the importance of anticipating and keeping track of the amounts already transferred.
Simple donation or dismemberment: which strategy to adopt?
In addition to full ownership, a donation can be made in bare ownership. This option allows the donor to retain the usufruct of the transferred capital (interest, rent), while reducing the taxable base. This mechanism, often used in property transfers, also applies to financial assets.
It has a twofold advantage: it optimises taxation and maintains a certain degree of control over the assets, without delaying the transfer from a legal standpoint.
Cerfa form: why declare even if there is no obligation to do so?
Even though the law does not require any declaration for manual donations below the exemption thresholds, filling in a Cerfa form no. 2735 remains a recommended practice. This step:
- secures the transfer vis-à-vis the tax authorities
- allows the gift to be officially dated
- avoids inheritance disputes in the event of a challenge
- protects the beneficiary in the event of a tax audit
Waiting until the estate is opened to report a gift exposes you to challenges or reinstatements in the estate assets. Transparency therefore provides a safety net for all parties.
The age of the donor influences certain allowances
The TEPA scheme allowed an additional allowance of €31,865 for cash gifts, provided that the donor was under 80 years of age and the beneficiary was of legal age or emancipated. Once this age threshold is exceeded, this exemption disappears, leaving only the standard allowance.
This rule encourages people to plan for transfers before the age of 80, particularly if they are considering giving large sums of money in cash. An early donation allows you to maximise allowances while spreading capital transfers over several years.
Preparing for inheritance after the age of 60: flexibility and strategy
Developing an inheritance strategy after the age of 60 involves carefully assessing:
- the allowances available and those already used
- family ties with the beneficiaries
- the legal form of the gift (manual, notarised, with dismemberment)
- your personal tax situation and that of your heirs
A poorly structured or poorly planned donation can lead to unexpected tax liabilities or family disputes. In some cases, it may be wise to seek wealth management advice in order to tailor the strategy to the specific circumstances of each household.