Duo Legacy

Do you consider making a gift to Siddartha while favoring your other heirs?

In Flanders it is possible to draw up a will in which you divide your assets between one or more heirs and a recognized institution or non-profit organization. The inheritance tax of your heirs, which can amount to 65%, can be borne by our recognized non-profit organization through a will. All this on the condition that we, as a recognized non-profit organization, take over and pay the full inheritance tax.

The following four elements are essential when editing a duo bequest:

  • the testator draws up a will (taking into account his available share);
  • here he bequeaths part of his assets to legal heirs or third parties;
  • He then bequeaths a bequest to the non-profit organization Siddartha Â
  • under the burden of the non-profit association Siddartha to pay the inheritance tax on the bequests to the legal heirs or third parties.

A major advantage with a duo bequest lies in the percentage of tax for a non-profit organization (8.8%) and a natural person (up to 65%).
How great this difference for a natural person depends on the degree of kinship and the amount of the inheritance.

Example 1
Frans V. from Edegem is a widower and has no children. He wishes to leave a sum of 250,000.00â to his cousin Michel E. .
In an ordinary bequest, Frans leaves the full sum of 250,000 euros to Michel. He pays 142,500 euros in inheritance tax. So he is left with 107,500 euros.
In the case of a duo bequest, Michel is bequeathed a sum of 150,000 euros, free of inheritance tax and costs. In addition, 100,000 euros will be bequeathed to non-profit organization Siddartha, which must also pay the inheritance tax and the costs associated with the bequest in favor of Michel. Michel receives 42,500 euros more than in the case of an ordinary bequest. Vzw Siddartha pays the inheritance tax on its own bequest and on Michel’s bequest, say 86,300 euros.
Vzw Siddartha ultimately still has 13,700 euros left. Both Michel and non-profit organization Siddartha therefore benefit from the duo legacy. 56,200 euros in inheritance tax is saved.

Example 2
Couple: Robert V. has a son Kenny V. and a net worth of 1,000,000 euros.
In the case of an ordinary bequest, Kenny would pay 222,000 euros in inheritance tax, and
778,000 euros left. However, Robert could also include a duo legacy in his
will, in which he leaves 800,000 euros to Kenny and 200,000 euros to non-profit organization Siddartha. Kenny would then receive 800,000 euros, free of inheritance tax, so 22,000 euros more than in the first case. Vzw Siddartha   would pay 185,600 euros in inheritance tax and 14,400 euros left. This means a saving of 36,400 euros in inheritance tax.

Your notary can undoubtedly help you further…

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