Do nothing and hope for the best
You make a donation, but don’t cover yourself in any way. That may be okay, but it could also go wrong. Because if you die within 3 years of making the donation, your heirs will have to pay inheritance tax on the amount you give them. The amount of tax depends on how closely you are related and also on the region where you live. For partners, children and grandchildren, the tax rate is 3% for small amounts, rising to 30% for large amounts. But if you are only distantly related, the percentage can rise to as much as 80%.
Have your donation registered by a notary.
You can also register your donation at the same time with a notary. Then, if you die within 3 years, there will be no inheritance tax for the recipients to pay. However, the recipient does have to pay a donation tax at the time of registration. It’s 3% (3.3% in Wallonia) for partners, children, grandchildren, parents and grandparents and 7% (5.5% in Wallonia) for other relationships.
Take out a Donation Care death insurance policy
With NN Donation Care, your heirs take out a short-term policy to cover the estimated amount of the inheritance tax linked to your donation. You are the person insured. Then, if you die within 3 years of making the donation, your heirs as the beneficiaries will be paid the amount insured so that they can pay the inheritance tax. The higher the amount of the donation, the more attractive a death insurance policy becomes.
These rules apply in accordance with current tax legislation and are subject to change in the future.
In the event of changes to the tax rules, NN Insurance Belgium nv cannot be held liable for the consequences.
Tax treatment depends on the individual situation of the customer and may change in the future.
Wherever reference is made to a tax system or regime, this needs to be understood as the tax system or regime that applies to an average retail customer living in Belgium in the capacity of a natural person (private individual).