Why do some wealthy seniors transfer property to their children but hold back rents? A couple of interesting solutions on the subject of usufruct.
LDear mothers, dear fathers, dear millionaires! I do a balance sheet every week, and there is a usufruct in half of those statements. In my eyes there are so many cases that I wonder what these parents are doing with the “half-hearted” gifts. Why do well-to-do seniors transfer property to their children and hold back rents? Why don’t the parents give out the whole gift? May I ask you the same question if you have decided to take this step in the past? And if you want to go to the notary shortly, may I present the following example from Berlin beforehand?
I begin the description with words from Georg Kreisler, the famous composer and singer from Vienna. The father is a sales representative and an honorable man, and the mother a lady one can seldom meet. The sons should have become decent boys according to their knowledge and belief. Although the sons studied at university, who would have thought that, they brought nothing but disgrace and disgrace to their parents. Nevertheless, the parents – the father is 65 years old, the mother is 63 years old – gave their two offspring – 35 and 33 years old – a small apartment building worth two million euros five years ago. The annual rental income of 100,000 euros continues to flow to the parents for “understandable” reasons, and the two gentlemen are as proud as Bolle that no taxes were incurred on the “donation”.