Purchase of a property financed by parents.
Often, it happens that parents, in wanting to financially help their child, proceed to finance the purchase of a property for them, without considering the patrimonial implications of their choice.
Therefore, in these considerations, the role of patrimonial consultancy becomes relevant.
Firstly, it is important to clarify that in this scenario, we are dealing with a typical example of indirect donation, meaning an act that produces the economic effects typical of a formal donation (enrichment of the beneficiary with a consequent depletion of the donor) even though the prescribed formalities (public deed and two witnesses) are not necessary. In other words, instead of purchasing the property in their own name and later gifting it to the child, the parent directly provides the money for the purchase of the said property to the child. In any case, the same substantive rules that the legal code dictates for a donation apply to the indirect donation.
A first consideration to evaluate, in the case of a child purchasing a property with money gifted by parents, is whether the property should be considered as definitively part of the child's assets.
Another consideration concerns the succession aspect and arises when the child for whom the property was purchased is not an only child. What needs to be done in these cases?
Furthermore, another consideration to be taken into account is when the property purchased with the parents' money is registered in the name of a child who is already married under legal communion regime; in this case, is the property considered as common property of the spouses or not?
Finally, there is another consideration, this time related to the tax aspect, wondering if the indirect donation is taxed in the same way as the direct donation or not.
To all these questions, and others, the patrimonial consultant can provide strategic advice to protect the individual and their assets.
Valor&Patrimonio srl
Wealth Consulting Studio
Via Pisacane n.176/F
55049 Viareggio (LU)
Email: info@valorepatrimonio.it
Contacts:
Chiara Vigilucci, Wealth Consultant 327-2287073;
Lawyer Roberta Barsanti, Wealth Consultant 338-7235742
