Coupled with a donation, life insurance can allow a grandparent to financially help a grandchild who is still a minor in anticipation of future needs. Manual.
Mr. Durant, 70, wants to partially finance the higher education of his grandson, Martin, when the latter, currently 12, turns 20. For this, he chooses to give her the sum of €50,000 in the form of a life insurance contract.
Mr. Durant gives a manual gift to Martin
Mr. Durant gives €50,000 to Martin, his grandson, on the condition that this sum of money be allocated to the subscription of a life insurance contract. The manual donation is declared online on the impots.gouv.fr website. Gift duties amount to €1,821, after application of the reduction of €31,865 between grandparents and grandchildren and the scale of gift duties. They are supported by the donor.
The “adjoining pact”, a separate document, generally provided by the insurer, includes several clauses:
- Martin will only have access to the capital at the age of 20;
- the contract will be managed by Mr. Durant himself (instead of Martin’s parents, who are legal administrators);
- if Martin marries, the capital will remain his own property.
Martin takes out the life insurance policy
Martin is at the same time the subscriber, the insured and the beneficiary of the insurance “in the event of life” (that is to say if he is alive at the end of the contract). If the contract also includes counter-insurance…