Lifetime donations

• What is a donation?
• How donations affect inheritance
• The process of estate reallocation (reintegration)
• Indirect donations
• When and how a donation can be revoked

What is a donation?

A donation is a legal agreement in which one party, out of generosity, transfers a right or asset to another without expecting anything in return. Because it’s a contract, it involves at least two parties.

Donations can take various forms, such as the transfer of usufruct, use and habitation rights, easements, property, credit, guarantees, or even contracts. Generally, donations must be formalized through a public deed, requiring a notary. However, small-value donations are an exception and can be made without a notary, provided the items are of modest value.

Assets that can be donated include businesses, company shares, credit instruments, vehicles, real estate, legal rights, and even future goods. Before proceeding with a donation, both the donor and recipient should consult a legal professional to ensure the donation is suitable and legally sound, minimizing the risk of disputes with third parties.

How donations affect inheritance

While donations and inheritances are distinct legal mechanisms, they can intersect in ways that may raise legal concerns. This typically occurs when someone donates a significant portion of their assets before death, potentially bypassing heirs who are legally entitled to a share.

For instance, if a person gives away all or most of their estate to someone not entitled to inherit, their legal heirs could be left with less than their fair share. In such cases, legal action may be necessary to challenge the donation.

Understanding the relationship between the donor and recipient, as well as the timing of the donation, is essential. If a donation is used to intentionally sidestep heirs, the law may require the value of the donation to be reintegrated into the estate. This process, called collation, treats the donation as an advance on inheritance and ensures that legal inheritance shares are preserved.

The process of estate reallocation (reintegration)

Reintegration refers to the process of restoring an heir to their rightful share of an estate. It involves re-evaluating the estate, taking into account any previous donations that may have diminished the inheritance.

This can be done through an agreement among the heirs or, if necessary, through civil litigation. Legal assistance is recommended in both cases, and mandatory for court proceedings.

Before going to court, a mandatory mediation attempt must be carried out with legal representation at an authorized mediation center. Given the complexity of estate matters, consulting a specialized attorney is highly advised to avoid procedural errors or rushed decisions.

In certain situations, especially when the estate includes valuable but unregistered movable property, a technical asset assessment may be needed. The final settlement might involve monetary compensation or the partial transfer of real estate to the disadvantaged heir.

Indirect donations

An indirect donation is a gift made through a legal act that differs from a standard donation. It may still affect the rights of other heirs if it provides a financial benefit to one party at the expense of others.

Such donations are subject to inheritance rules and may be challenged if they violate the rights of other heirs. Proving this requires legal evidence, and professional guidance is essential.

For example, if a parent buys a home in their child's name, this may be considered an indirect donation. Unlike simulated donations—where the true intent of the parties is concealed—indirect donations are genuine but disguised as other legal transactions, like purchases.

When and how a donation can be revoked

Donations can be revoked in limited, legally defined circumstances:

1. Ingratitude – If the recipient behaves in a way that seriously offends or harms the donor’s honor or interests.
2. Subsequent Birth of Children – If the donor discovers or has a child after making the donation.

In cases of ingratitude, legal action must be initiated within one year of the donor becoming aware of the offense. For revocation due to a child’s birth, the deadline is five years from the date of birth.

These rules apply to donations made while the donor is alive, but heirs may also initiate revocation after the donor’s death, as long as the legal grounds existed beforehand.

Additionally, any interested party may challenge a donation within five years of the public deed. If the challenge is based on a violation of statutory inheritance shares, the time limit is ten years from the start of the succession process.

Donations are a powerful legal tool that can serve generous or strategic purposes, but they come with legal risks—especially when inheritance laws are involved. To avoid complications, always consult a qualified professional before making or accepting a donation.