What does it consist of?
Lifetime donations, also known as donations from parents to children, are a method of transferring assets similar to inheritance.
The main purpose of this process is to document the transfer of an asset to another person.
These donations are made at no cost to the recipient, who is not required to pay any price or provide any compensation. Although in some cases they may include a charge or encumbrance for the recipient, the value of what is received always exceeds such imposed burden.
These donations can be granted to both natural persons (whether family members or not) and legal entities (such as NGOs, foundations, etc.).
Types of Donations
Collationable donation
Transfer made during the donor’s lifetime to an heir, which must later be reintegrated into the estate after the donor’s death in order to calculate the inheritance shares.
Non-collationable donation
Made as a gift, without the need for the recipient to compensate the other heirs.
Pure donation
The donor freely gives part of their assets without imposing charges or conditions.
Onerous donation
The donor establishes conditions that reduce the value of the donation, imposing obligations on the recipient.
Required documentation
A valid ID card or passport.
To ensure tax benefits are applied, it is advisable to prove certain circumstances. For example, in family relationships, it is essential to prove the degree of kinship, for which the Family Book or birth certificate will be required. Alternatively, kinship may also be confirmed through a sworn declaration.
If the donation involves real estate, proof of ownership must be provided, either through a title deed or an extract from the Property Registry obtained via the notary’s office.
If the donation involves a movable asset, such as money, proof of payment (e.g., a check or bank transfer) must be provided, and the deed must include the account from which the donated funds originated.
For vehicle donations, ownership documents are required, while for shares or corporate participations, a deed of incorporation or purchase deed of such shares/participations will typically be needed.
In which situations can this service be used?
Donations can be used in a wide variety of situations and contexts, including:
Support for family members.
Contributions to charitable organizations.
Estate planning.
Obtaining tax benefits.
Transfer of property between individuals and entities.