Limit your taxation through certification

The fund manages your assets
Certification of assets means that you as a DGA transfer assets to a fund that is to manage the assets (read: determine the policy). Such a fund is often referred to as a Stichting Administratiekantoor. This fund becomes the legal owner of the assets. The board of the foundation will direct and issue certificates to you in return. The financial interest in the assets lies with you as a certificate holder. You will receive dividends and any other changes in equity will benefit you.

In practice, the person who transfers capital to the Fund for the Fund is also the sole director. Little seems to have changed for you: you retain the financial interest in the assets and you are the sole director of the fund that manages the assets.

Donate in stages
However, certification has great benefits. You can give the certificates to your children in stages. By giving a number of certificates to the children each year, you can save inheritance taxes. In addition, you can make use of the gift exemption of € 4,303 each year (see example 1). If your children have not yet reached the age of 35, you can also still make use of the increased one-time exemption of € 21,506 (2005).

Retain decision-making power
Another benefit of certification: Despite the gift certificates for your children, the entire investment portfolio remains as parent capital. You retain the decision-making power in this regard. As a director of the fund, you can continue to manage the assets the way you want, while the proceeds already go to your children.

Transfer is not taxed
Your securities portfolio is taxed on income tax in box 3. You must pay 4% per annum of the value of your wealth in capital gains tax. The tax authorities are based on the value of the difference in your wealth per. 1 January and 31 December of the financial year. The transfer of your securities portfolio to the fund is therefore not taxed.

The certificates to be issued are identified for income tax purposes with the assets placed in the fund and are therefore taxed in box 3 in the same way.

Examples
Example 1:Donate in stages.
If you donate one million euros to four children at once, it is 4 x € 250,000. It is tax more interesting to donate € 25,000 for 10 years.

Couple: you are single and will give your children an annual gift. Your net worth is one million. When you die, each child will receive € 250,000. Your children each pay € 35,671 in inheritance tax.

If you donate € 25,000 to each child each year for the coming years, an amount of € 20,697 of that amount will be taxed annually (taking into account the € 4,303 exemption). The gift tax is then ‘only’ € 1,034. In total, you owe € 10,340 in gift tax over 10 years. Per child so you save more than € 25,000 for inheritance tax!


One-time donation (€)

250,000

250,000

250,000

250,000

Gift tax is payable

35,671

35,671

35,671

35,671

Donate 10 years € 25,000

250,000

250,000

250,000

250,000

Gift right over 10 years

10,340 th most common

10,340 th most common

10,340 th most common

10,340 th most common

Tax benefit:

25,331

25,331

25,331

25,331

Example 2:The great advantage of certification of shares is the division between the power of BV (the director of the fund) and the financial interest (the holders of evidence). Especially if a DGA has several children (read: several heirs) and only one of them wants to take over the business at a later date. The shares of a company are often the principal component of his property for a DGA. If these shares accrue to an heir for the purpose of continuation, a large over-distribution debt could arise for the child in question.

Couple: DGA X dies, leaving a capital of € 3,000,000. Not less than € 2,800,000 of this capital consists of shares in his BV and € 200,000 of other capital.
DGA X has three sons (his only heirs). Son Y takes over the shares to continue BV. If son Y gets all the shares from the estate, he would be hugely gifted. This creates a debt to his brothers of € 1,800,000 (this is the amount he actually received too much from the inheritance), which he may never be able to repay. If he does not have a large equity, he must repay that debt with profit from BV. These profits are first taxed with corporation tax, while the dividend payments are also included in the income tax. This can be harmful. Especially when the other brothers quickly claim their share.

A son in the fund
By certifying the shares and appointing son Y as successive director of the managing fund, the custody certificates can simply inherit equal shares to the three sons, and son Y will not inherit any debt to his brothers. After all, each of the sons will have equal financial interest in the shares. By appointing son Y as successive director of the fund, he himself will acquire power over the BV and will be able to continue the BV independently.

After certification, DGA is the certificate holder (financial interest) and director of the fund (he is the legal owner of the shares in BV) He therefore has several hats: the director of the fund and the certificate holder. .

Example 3As a father / main shareholder / owner, you want to ensure the continuity of your company. you carry certificates for your two sonswho become financial owners.

They will receive all dividends and other changes in equity in the future. BV remains taxable for the company. The fund remains the legal owner and you remain the director. You decide the policy. And you can also remain on the payroll at BV, for example as a consultant.

Example 4Your two sons both have one feat established with an operating company downstairs. They fear that they will not make all the decisions unanimously. She and you decide that you as a father will remain on the board of the trust office fund in a possible advisory role. From a financial point of view, as a father you no longer have anything to do with the company. The fund remains the legal owner.

The notary’s administrative actions

  • Deed of transfer of shares and depositary receipts;
  • Deed of incorporation of the administrative office;
  • Administration Deed Conditions;
  • Necessary decisions of those involved.

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