Giving NFTs to your children during your lifetime is relatively easy and can even be tax exempt. If the tax site does not yet mention NFT on its donations page, it will. In the meantime, you can make a donation during your lifetime or by will to your children: money, material goods (car, jewelry, etc.), buildings and securities (shares, shares, etc.), NFTs or cryptos.
If you’ve come this far, you already know what an NFT is. If this is not the case, do not hesitate to consult this article which explains everything to you.
What does the taxman say about donations?
You may not know it, but you are likely to be taxable when you give something to your children (if you give to charity, on the other hand, you can have a tax credit. You will find the rules precise and complicated on the tax website). However, there are exemptions: each parent can give up to €100,000 to their child. A couple can therefore transmit to each of their children €200,000 every 15 years in one or more instalments.
Children can declare this donation by logging into their space on the tax website: there is a tab “ You have received a donation, declare it“. They can also file with the tax authorities theprinted 2735 in duplicate.
Donate NFTs (or cryptos) while alive?
As we have seen, you can give whatever you want, cash, cryptos, jewelry… As long as what you give is legal of course. To be less taxed, make donations with allowances, otherwise you will go through the tax box. The prices paid for your NFTs are easy to prove. On the other hand, if you bought them by making a capital gain on your cryptos, there will probably be a scholarly calculation to estimate the flat tax. You can donate your NFTs by making a transfer on the wallets of your children or, if you have only one child, you give him the private keys of said wallet.
How to transmit NFT by will?
Your notary will not be able to do anything for your heirs if he does not have the private keys of yourwallet. You can entrust him with the management of the private keys: he will keep them in his “real” safe on a material medium or in his electronic safe. This custody service has a cost and involves risks, but the notary has insurance. If the study is broken into or the system hacked, find out about the amount of compensation provided. The cost of a holographic will, that is to say simply registered with a notary, is less than 30 euros to date. You can also write there where you have hidden your private keys. If you’re a gambler, think up some puzzles: but if your heirs can’t find your keys, then that will complicate the work of the notary. How to establish the estate balance sheet?
If you have opted for a bank safe, this safe will no longer be accessible upon your death without formalities. Even for people with power of attorney.
Investing in NFTs is obviously not without risk: digital art is totally random. The first Jack Dorsey’s tweet sold as NFTs at $2.9 million in 2021 is almost worth nothing today. The “Bored Ape Yacht Club (BAYC)” monkeys have a rather uncertain future. So rather than bequeath works that may no longer have any value, why not simply invest in bitcoins (BTC)? Perhaps your children will then be able to consider spending a holiday in El Salvador, or even settling there? (Spending your bitcoins will not make you forget your disappearance, but at least they will be used for something…)
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