Lifetime gift and transfer of real estate

People often wish to transfer assets in the form of real estate to the next generation or their spouse during their lifetime.

There are many ways to adapt the transfer to the individual wishes and needs of the donor/transferor.

1. Right of residence/right of usufructThe donor can reserve a lifelong right of residence in respect of all or part of the property, which can be entered in the land register as security. The right of residence relates exclusively to living and does not give the donor/transferor the option of renting or selling the property. If the donor/transferor is to have the option of renting out the property or collecting the rents from a rented property, a usufructuary right can be agreed; another option for securing the donor is to agree a lifelong pension payment. This is secured in the land register by means of an encumbrance in rem.
2. Reservation of rights of recoveryIn the gift agreement, it is possible to agree rights of recovery for the donor. The clawback options can be clearly regulated, e.g. in the event that the donee dies before the donor, the donee sells the property without the donor's consent, personal insolvency proceedings are opened against the donor's assets, etc. In these cases, it can be agreed that the donor can exercise a right of reclaim and thus become the owner of the property again.
3. Effects of the gift in the event of inheritanceIn the case of lifetime transfers, the donor must examine the effects of the gift in the event of inheritance. For example, they must think about possible equalization between siblings, take into account possible claims to a supplementary compulsory portion and, if necessary, consider waiving the compulsory portion. Your notary will be happy to advise you.