Should I sell house to daughter?
The price agreed must be the market price or it will be considered a partial donation and attract inheritance issues
I AM 63 and have a state pension and a few savings. My partner receives only disability benefits. I have recently been considering selling my house and then renting accommodation. My daughter and her partner have now suggested that they purchase my house for a future investment and I could continue to live in it. What are the pros and cons? L.M.
François Trémosa, a notaire from the Groupe Monassier in Toulouse, said the idea is a good one as long as the price agreed between you is a market price.
Otherwise, it would be legally considered as a partial donation (formal gift to the daughter), which means there are potential issues relating to the réserve héreditaire.
This means it would be taken into account when your estate comes to be divided up.
Should you have any other children, under French law they are all entitled to a set minimum share of your estate, so if the “gift” relating to the the house was too large your daughter might have money to repay.
Once your daughter becomes the owner, she can rent the house to whomever she wants; however, in the sales contract there could be an explicit agreement that you will remain living in it indefinitely.