You Might Be Wondering…

• Is a verbal gift enough if it’s “just family”?

• Can I keep the right of use if I gift an apartment to my grandchild?

• Is it better to gift during my lifetime, or wait for inheritance?

• What tax obligations will I face?

Clients Ask Me

Does gifting to a grandchild always require a written agreement?
If it concerns real estate or other high-value assets, a written contract is essential. For smaller movables, formalities are less strict, but I always recommend putting it in writing.

Can I secure a right of residence in a donated house?
Yes. A gift agreement can include an easement (servitude) that ensures your right to live in the property even after the gift.

Is gifting to grandchildren better than making a will?
It depends. A gift takes effect immediately, while a will only after death. However, a gift can be revoked under certain conditions.

Gifting to Grandchildren in a Nutshell

• Form: Real estate must always be transferred via a written contract with a filing to the Land Registry.

• Donor’s protection: You can include a servitude (e.g., right of residence).

• Taxes: Grandchildren fall into the direct line of relatives, so the gift is tax-exempt.

• Inheritance implications: Gifts may be counted toward inheritance to ensure fairness among heirs.

Biggest Risks and Common Mistakes

1. Lack of written contract – especially for real estate, the gift is invalid and unenforceable.

2. Forgetting the servitude – grandparents gift an apartment but lose their legal right to live in it.

3. Inheritance disputes – gifts can cause conflicts with other heirs.

4. Overlooking financial aspects – larger gifts can have implications such as property tax, fees, or financial planning for the grandchild.

Step-by-Step Process

1. Decide exactly what you want to gift (money, apartment, land).

2. Consider whether you want to retain certain rights (residence, lifetime use).

3. Draft a gift agreement – ideally with a lawyer’s help.

4. For real estate, file the contract with the Land Registry.

5. Keep the agreement safely stored to avoid future disputes.

Example from Practice

Grandparents gifted their grandson an apartment. They wanted to help him start his life but forgot to include a servitude of lifetime residence in the contract. A few years later, the relationship soured and the grandson attempted to evict them. The court battle was exhausting and could have been avoided if the agreement had been professionally drafted from the beginning.

Why to Be Careful with DIY Agreements

The internet is full of free gift agreement templates. However, these don’t address individual circumstances – such as the donor’s protection, Land Registry specifics, or future inheritance disputes. Every family has its own context, and a generic form can create major problems.

Lawyer’s Recommendation

I often see cases where good intentions ended badly simply because people tried to save money on the contract. I recommend:

• always making a written agreement,

• including servitude rights of residence,

• considering the inheritance implications in advance.

Checklist for Gifting to Grandchildren:
✅ Written agreement
✅ Servitude of lifetime residence (if you plan to stay in the property)
✅ Consider inheritance implications
✅ Professional legal consultation

FAQ

Does a gift to a grandchild have to be reported to the tax office?
In the direct line of relatives, gifts are tax-exempt, but a written contract is always recommended in case of disputes.

Can a gift to a grandchild be revoked?
Yes, for example due to ingratitude or if the donor falls into hardship.

Is a gift better than a will?
A gift takes effect immediately, while a will only after death. It depends on the specific family situation.