Transmit Your Wealth Effectively: ###

The Power of Property Demerger

Transfer your property heritage efficiently with property demerger

By The Carto Immo Team

!Property Demerger Diagram

Property demerger, also known as division of property rights, is an efficient technique for transmitting your real estate assets to your heirs while minimizing legal and tax implications.

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#### What is Property Demerger?

A property demerger involves dividing the ownership of a property into two separate parts: naked ownership (usufruct) and bare ownership (nue-propriété).

• Naked ownership (usufruct): The right to use and enjoy the property, collect rent, and benefit from any income it generates.

• Bare ownership (nue-propriété): The right to own the property's inherent value and transfer it to heirs.

This arrangement allows the usufruct holder to continue using the property while the nue-propriétaire prepares for long-term ownership.

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#### How Does Property Demerger Benefit You?

1. Estate Planning: Ensure a smooth transition of your property to your heirs without excessive legal procedures.

1. Tax Efficiency: Minimize gift and inheritance taxes by separating the property's income and capital value.

1. Flexibility: Adapt the property demerger to your personal and financial situation.

1. Financial Security: Protect your assets from creditors by separating the property's income and capital.

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#### Case Study: The Smith Family

Mr. and Mrs. Smith, both in their 70s, own a valuable apartment in Paris. They have two children and wish to pass on their property while minimizing gift taxes.

They decide to demerge their property, granting their children bare ownership and retaining naked ownership for themselves.

By doing so, they slash their gift taxes by 60% and secure their children's future inheritance.

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#### When to Consider Property Demerger?

*When planning your estate and wishing to optimize tax efficiency. *When you want to pass on your property to your heirs while maintaining its usufruct. *When seeking to protect your assets from creditors.

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#### How to Implement Property Demerger

1. Consult a Professional: Seek advice from a notary, lawyer, or financial advisor experienced in property demergers.

1. Assess Your Situation: Evaluate your property, financial, and familial circumstances to determine the best approach.

1. Execute the Demerger: Draft and sign the property demerger agreement, executed by a notary.

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Take advantage of property demerger to efficiently pass on your legacy and protect your assets. Contact Carto Immo today for expert advice and support.