Temporary gift of usufruct: advantages, procedures and tax optimization
A temporary usufruct donation is an innovative and flexible solution for supporting an association like the Procure missionnaire de l’Assomption, while retaining ownership of your assets. This type of donation is becoming increasingly popular with donors, as it enables them to finance concrete projects (education, training, solidarity) without permanently relinquishing their assets.
According to French notaries, temporary usufruits account for almost 15% of donations to associations, due to their flexibility and tax advantages (source: Chambre des Notaires, 2024). Let us help you understand how temporary usufruct donations work, what their advantages and limitations are, and how to set them up safely.
1. What is a temporary gift of usufruct?
A temporary gift of usufruct is a legal act by which, as the donor, you pass on the income from a property (rent, dividends, interest) to an association or individual for a limited period, while retaining ownership of your property.
Example: “I donate the rents from my apartment to the Assumption Missionary Procure for 10 years.”
Understanding the difference between temporary usufruct and life annuity
| Concept | Definition | Example |
| temporary usufruct | Transmission of income for a limited period (e.g. 5 years). | Donate the rent on an apartment to an association for 5 years. |
| life usufruct | Transmission of income until the donor’s death. | Give the rent on an apartment to a child until his or her death. |
For example, you can :
- Donation of property rents: “I donate the rents from my apartment at 15 rue de la Paix, 75001 Paris, to the Procure missionnaire de l’Assomption for 5 years.”
- Giving dividends from a stock portfolio: “I’m giving the dividends from my 100 shares in company X to my nephew for 3 years.
2. Why choose a temporary gift of usufruct?
You want to support a cause without losing ownership
With a temporary gift of usufruct, you retain ownership of your property. You finance a specific project (e.g. religious training, education) for a fixed period.
Example: By donating the rent on your apartment to the Procure missionnaire de l’Assomption for 5 years, you support the training of young religious without selling your property.
You want to take advantage of tax benefits
Temporary donations of usufruct to associations recognized as being of public utility or not, simply declared and pursuing an exclusive goal of assistance and charity (such as the Procure missionnaire de l’Assomption) are eligible for a 66% tax reduction, up to a limit of 20% of taxable income.
For example: a donation of €5,000 in rent entitles you to a tax reduction of €3,300.
You choose the term (e.g. 3, 5 or 10 years) and at the end of the period, you recover full ownership of your income.
Example: “I give the rent on my apartment to the Assumption Missionary Procure for 5 years. At the end of this period, I recover the rents.”
Preparing your succession
A temporary gift of usufruct can enable you to test a transmission before making a definitive gift. And it avoids inheritance tax by reducing the taxable value of your estate.
3. How to make a temporary gift of usufruct?
The main steps to follow
- Evaluate the income from your property (rents, dividends).
- Choose the duration (e.g. 3, 5 or 10 years).
- Draw up the deed of gift (we recommend you do this before a notary).
- Declare your donation to the tax authorities to benefit from the tax reduction.
Some sample deeds of gift to guide you
- For property rentals
Sample deed: “I, the undersigned, [Surname and first name], born on [date] in [place], residing at [address], hereby give to La Procure missionnaire de l’Assomption the rent for my apartment at [full address], for a period of [number] years from [date]. Done at [place], on [date]. [Signature].”
- For portfolio dividends
Sample deed: “I give the dividends of my [number] shares in the company [Name], for a period of [number] years, to La Procure missionnaire de l’Assomption.”
4. Tips to avoid unpleasant surprises
Don’t underestimate the duration of your donation
- Mistake to avoid: choosing too long or too short a duration.
- Best practice: assess your needs and those of the donee (e.g.: duration of an associative project).
Don’t forget to declare your donation
- Mistake to avoid: not declaring the donation to the tax authorities.
- Best practice: always declare your donation to benefit from the tax reduction.
Don’t choose an ineligible donee
- Error to avoid: Donating to an association that is not recognized as being of public utility or Associations that are not recognized as being of public utility or that pursue an exclusively charitable or welfare purpose.
- Best practice: check the eligibility of the donee (e.g.: la Procure missionnaire de l’Assomption).
5. frequently asked questions
No, a gift is irrevocable, except in the case ofingratitude on the part of the donee (e.g. attempted murder, serious insults). You will have to take legal action to annul it.
This is recommended to secure the deed and avoid disputes, andmandatory if the property is real estate.
Yes, if you draw up an amendment to the initial deed, with the agreement of the donee.
Temporary gift of usufruct: a flexible tool
The temporary gift of usufruct is a flexible tool if you wish to support the missionary Procure de l’Assomption without losing ownership of its assets. Whether you’re giving the rents from an apartment, the dividends from a portfolio or the income from a rental property, the important thing is to respect the legal rules and consult a notary to ensure the security of your approach.
Do you have a question or need advice? We’re here to help:
Contact us: legs@assomption.org | 01 44 41 40 34