Would you be able to do without something yourself now and do you want to give your child, grandchild or loved one a helping hand? Then make them a donation. It would be a lovely gesture, but there is also a downside: if you die within 3 years of making an unregistered donation, the recipients will have to pay inheritance tax. Donation Care death insurance enables you to avoid any unpleasant financial surprises.
It’s a short-term policy, taken out by your heirs, with you as the insured person
Save your heirs possible inheritance tax when you make a donation
Discount on the premium if you register as an organ donor
Donation Care is a Branch 21 death insurance policy with a minimum term of 1 year and a maximum of 4 (*) years.
Donation Care s only possible as part of a non-fiscal policy.
Donation Care aims to protect the surviving heirs of the insured person in this policy against the impact of high inheritance tax resulting from a gift. If the insured person dies within 3 years (Wallonia) or 4 years (Flanders) of the gift being made, he/she will receive the insured amount of the estimated inheritance tax. The higher the amount of the gift, the more attractive this insurance becomes.
For more details, see the Financial Information Sheet
(*) Adjustment to 4 years (see Flemish government agreement of September 2019) scheduled for Q1_2021
Applies to all policies taken out after 01/07/2021.
Donation Care is aimed at natural persons wanting to cover their surviving heirs against the financial consequences resulting from a direct personal gift ('handgift') or a gift received via a bank transfer between accounts ('bankgift') following their death if the gift has not been registered. The age of the insured person at the time the policy is taken out must be between 18 and 80.
If it is a natural person, the minimum age at the time the policy is taken out is 18.
This product is not suitable for natural persons wishing to provide protection for their surviving heirs where the insured person is either younger or older than the permitted criteria.
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).
If the insured capital amount you wish to donate is grater than 1 million euro, then you should contact your broker.
Your broker will be happy to help you with any questions you may have about this product. You can also ask your broker for a price quote and a premium calculation.
Find a broker near you.
Option for accidental death
If you select this option and you die as the result of an accident, then your heirs will receive an additional amount on top of the Donation Care capital lump sum. This means you are giving the extra security.
Possible payment types for the premium:
In terms of frequency, you can opt to make monthly payments by direct debit, or annually by direct debit or transfer.
And if you register as an organ donor before you take out the policy, you will receive a 5% discount on your Donation Care premiums.
It’s simple and free to register on www.beldonor.be.
Simplified medical acceptance up to age 51 and up to € 300,000
It is necessary to read the following documents before purchasing, subscribing, accepting, signing or opening an NN Donnation care contract;
If you have a complaint about your NN policy, please contact NN, Quality Team, 38 Fonsnylaan, 1060 Brussels. Send an e-mail in the first instance to klachten@nn.be. Or contact the Consumer Ombudsman Service at the Insurance Ombudsman, 35 de Meeûssquare, 1000 Brussels. Tel: +32(0)2 547 58 71, fax: +32(0)2 547 59 75, info@ombudsman.as, www.ombudsman.as. It is also possible at all times to take legal action.
