Transferring TotalEnergies shares is a good way to show your commitment to the Company and to plan for the future in order to benefit from certain tax advantages.
You are a French tax resident Several options are available to you (the donor ) to transfer the ownership of your TotalEnergies shares free of charge to your child, spouse, partner or any other person of your choice (the beneficiary ).
You can choose:
AN INFORMAL GIFT
Occasion: family events (marriage, birthday, birth, etc.) Characteristics:
- Tax-free - Must be limited to small amounts in proportion
to your estate and income - No obligation to declare it - Cannot be returned to the estate to be included
in the inheritance
A HAND-TO-HAND GIFT
Occasion: at any time Characteristics:
- Drafting a deed before a notary is optional - Can be recorded in a written document confirming
that the shares have been transferred and possibly include conditions (pacte adjoint)
- The value of the gift can be determined by informing the tax authorities of the gift (using French tax form no. 2735)
- Is tax free as long as it has not been disclosed or that it has not been reported on the occasion of a new transfer free of charge.
- Once it has been reported, it must be declared or recorded within the following month (a gift may be reported to the tax authorities if it was declared in a notarial deed, following a tax inspection or a declaration of inheritance after the donor s death)
- A hand-to-hand gift can be declared within the month following the donor s death, if its amount is higher than 15,000
- Can be returned to the estate to be included in the inheritance
OR
A GIFT TO A SPOUSE
Occasion: at any time Characteristics:
- Must be signed in the presence of a notary; its distinctive feature is that it can be overturned (except if the gift was part of a marriage contract), even without the other spouse s consent
- It takes effect on the day of the donor s death
A SIMPLE GIFT
Occasion: at any time Characteristics:
- Must be signed in the presence of a notary - Cannot be overturned save in exceptional cases - May be subject to specific clauses
OR
OR
Gifts may be subject to taxes after application of a possible tax allowance. Tax amounts depend on the family relationship with the beneficiaries.
When payable, they are usually paid by the beneficiary, but the donor can bear their cost without increasing the value of the gift.
N.B. in some cases, a reduction may apply (in particular for donations to people with disabilities, even where the donor and beneficiary are unrelated).
A DONATION INTER-VIVOS
Occasion: assets settlement before death Characteristics:
- It is an excellent way of rewarding your children in the long term
- Is recorded in an authentic deed signed before a notary, and the donor can continue to receive the dividends on the assets transferred
- Cannot be returned to the estate to be included in the inheritance
- May reduce inheritance taxes
(1) Shareholders who are tax residents in France must be aware that the information provided is a summary of the rules applicable to them according to the current tax law and that their specific situation will need to be examined with their tax advisor.
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