How to anticipate the financing of your children’s studies?

Use the available placement palette

From an early age, you can open a booklet in the name of the child, fed regularly or periodically by your payments or those of the grandparents.

If you want to put money aside very regularly, you can opt for a Housing Savings Plan or a life insurance contract . On this last support, it will be necessary to choose a multi-support contract, with part of the funds in euros, which can be boosted by units of account in shares and bonds, since the investment is long term.

Gifts of money to the majority of the child

Parents, grandparents and even great-grandparents have the possibility of making financial gifts to their descendants. These donations are exempt from transfer duties free of charge, up to a limit of €31,865 every 15 years, per ascendant and per descendant.

To qualify for this exemption, two conditions must be met:

• the donor must be under the age of 80
• the beneficiary must be of legal age (or have been the subject of an emancipation measure).

The temporary donation of usufruct

If you have real estate assets and/or a substantial securities portfolio, you can temporarily give the usufruct of real estate or a securities portfolio to your adult children who are not attached to your tax household.

The latter will thus have the income from the donated goods to finance their studies. This autonomy will eventually make them liable to income tax.

As for you, parents who have become bare owners, you will see both your income tax and your possible property wealth tax reduced. At the end of the temporary usufruct, you will regain full ownership of your property, without tax friction, and the child’s studies will have been financed.