What do they consist of?
Lifetime donations, also known as donations from parents to children, are a method of transferring assets, similar to inheritances.
The main objective of this process is to document the transfer of an asset to another person.
These types of donations are made at no cost to the recipient, who is not obligated to pay any price or provide any consideration. Although in some cases they may include a charge or encumbrance for the recipient, the value of what is received always exceeds this imposed charge.
These donations can be made to individuals (whether or not they are family members) as well as to legal entities (such as NGOs, foundations, etc.).
Types of Donations
Collapsible Donation: A transfer made during the donor's lifetime to an heir, which, after the donor's death, must be returned to the estate to calculate the distribution of assets.
Non-collapsible donation: This is made as a gift, without the recipient needing to compensate the other heirs..
Unconditional donation: The donor freely gives part of their assets without imposing any charges or conditions.
Constrained donation: The donor establishes conditions that reduce the amount of the donation, imposing a series of obligations on the recipient.
Required documentation
A valid national identity card or passport is required.
To guarantee the application of tax benefits, it is advisable to demonstrate certain circumstances. For example, in family relationships, it is crucial to prove the degree of kinship, for which a Family Book or birth certificate will be required. It is also possible to confirm the kinship through a declaration.
If the donation involves real estate, proof of ownership must be provided, either through a deed or a property registry extract obtained through a notary.
In contrast, if the donation involves movable property, such as money, a check or bank transfer receipt justifying the payment must be presented, and the deed will include the account from which the donated funds originated.
Furthermore, for vehicle donations, documents proving ownership are required, while for stocks or shares, a deed of incorporation or purchase agreement for said stocks or shares will typically be necessary.
In what situations can this service be used?
Donations can be used in a variety of situations and contexts, including:
Supporting family members.
Contributing to charitable organizations.
Estate planning.
Obtaining tax benefits.
Transferring property between individuals and entities