Why the retirement savings plan can also be a transmission tool


The retirement savings plan (PER) is a form of schizophrenia. On the one hand, it aims to help the French build up capital to improve their standard of living in retirement; the other, it mainly attracts wealthy households, for whom the deductibility of income allows significant tax savings. These savers potentially have a comfortable retirement and often have sufficient ets to meet their needs. As a result, they will not necessarily need the savings they have built up within the PER when they retire.

In addition, the savings retained from the PER are transmitted at the time of death, which de facto results in the closure of the plan. “If you have the possibility of keeping your PER to transmit it, you must do so, because it is only through transmission that you can keep the tax advantage obtained upon entry”, ures Julien Male, deputy general director of the Laplace consulting group. Clearly, the sums deposited into the deceased’s PER will not be subject to income tax.

To know precisely the tax treatment of these savings held in the PER envelope after death, you must already know if you hold a PER in securities account format or life insurance.

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In the first case, it is simple, since it includes the capital subject to inheritance tax. The scale varies depending on the amount concerned and the relationship of the heirs. Thus, the spouse or civil partner is exempt; children benefit from a reduction of 100,000 euros each, the balance being taxed according to a progressive scale between 5% and 45%. On the other hand, the bill can rise very quickly if the heirs are not direct relatives (succession between brothers and sisters or to nephews and nieces, for example).

Protect your other half

It’s more complicated if you hold an insurance PER, the most common case for individual PERs. “You then benefit from a reduction identical to that of life insurance before age 70, but this pivotal age corresponds to the time of death, and not to the time of payment of premiums”, says Albert d’Anthoüard, director of private clients at the Nalo management and investment platform. In practice, if death occurs before the insured’s 70th birthday, the beneficiaries benefit from a reduction of 152,500 euros each. Beyond this sum, capital is taxed at 20% (up to 852,500 euros and 31.25% beyond).

You should know that this reduction is common to all life insurance and PER contracts for the same beneficiary: in other words, if you wish to p on your ets to your children and you have already taken advantage of the reductions on life insurance contracts. life insurance, the sums placed in your PER will not be able to benefit from it.

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