Donate or sell your home?

Are you considering giving away your home or part of your assets to your children? Look before you leap,' they say in a recent article by Netto, in which they interviewed various experts about the questions you should ask yourself before you donate part of your assets. Jo Stremersch, financial planner at Stremersch, Van Broekhoven & Partners and Mark Delboo of the law firm of the same name are among those who have spoken. Sttermersch remarks: 'You should not pass on your misery. The next generation wants the return on a house, but not the burden. Take, for example, a flat that has been in the family for 25 years and is completely worn out. It costs a lot, and the rent yields a return of barely 1 per cent. Is it still worthwhile to donate the flat? Would it not be better to sell it and donate the proceeds? Delboo also points out that you should think carefully before giving away the family home: "Know that the surviving spouse does not pay any inheritance tax on the family home. Moreover, the children usually have little appetite to live there. If the parent goes into retirement, it may be a better option to sell the family home and donate the proceeds."