Donation Care: avoid death duties when making a monetary gift
A gift is a wonderful gesture to your loved ones. You have more than you need, so you can give your child, your grandchild or another apple of your eye a helping hand. Or perhaps you received an inheritance yourself and don't want to wait to share it with others. That's great –
but there is a downside. If you die within three years of making the gift (non registered) then the recipients will have to pay death duties on it. The Donation Care death insurance policy helps you avoid any unpleasant financial surprises.
Did you answer "yes" to all three of those questions? If so, Donation Care is the perfect death insurance policy for your needs.
Make the most of the freedom offered by the tax authorities
You have three options when making a gift.
1. Do nothing and hope for the best
You arrange no cover at all. If disaster strikes and you pass away within three years of making the gift then your next of kin will need to pay death duties. The amount depends on the degree of kinship between you and the recipient of the gift, and on the region you live in. For partners, children and grandchildren, the tax payable on small amounts is 3%, increasing to 30% for large amounts. If the recipient is more distantly related, then the percentage can be as much as 80%.
2. Register the gift with a notary
You register the gift with a notary. If you pass away within three years of making the gift then the recipients will have to pay death duties of 3% to 80%. The recipient must also pay gift tax immediately after registration. This gift tax is 3% (3,3% in Walloon Region) for partners, (grand)children and (grand)parents, and 7% (7,7% in Walloon Region) for other relationships.
3. Take out Donation Care death cover
There is a more advantageous solution. Your next of kin can take out a temporary policy to cover the estimated amount of the death duties payable on your gift. You are the policyholder. The higher the value of the gift, the more attractive the death insurance will be. If you pass away within three years of making the gift, the insured amount will be paid out to your beneficiaries so that they can pay the death duties.
The moral of the story is: certainty for the recipient, and peace of mind for you
Do you find it odd talking to your next of kin about taking out a death insurance policy where you are the person insured? That's understandable – but it also makes sense that you would want to avoid your loved ones having to pay considerable amounts of inheritance tax on your gift. The only way to achieve real peace of mind is to plan for the future.
Options and arrangements
Organ donor discount
Were you registered as an organ donor before signing your agreement? Then you are entitled to a 5% discount on your Donation Care premiums.
If you choose this option then your next of kin will receive an additional amount on top of the Donation Care capital. In this way, you will provide them with greater security in the event of your accidental death.
Conditions and details
must be at least EUR 25,000 at the start of the policy
must not exceed EUR 999,999 at the start of the policy
If your capital is greater than 1 million euro then please get in touch with your broker.
Duration of the contract:
minimum 1 year
maximum 3 years
Premiums and charges
single premium (you pay the full premium in one go)
fixed premium (you spread the payments over time; the premium remains constant)
risk premiums (the premium changes as you get older)
monthly: only via direct debit
annual: via direct debit or transfer
Don't delay – ask your broker for a quotation in order to find out your exact premium, adjusted to your personal situation.