Can you buy a flat and put it in your child’s name?

Gifting during life, a legal act allowing the free transfer of property ownership to a third party, is gaining popularity due to its tax benefits. Often used to transfer housing to a child, this mechanism offers a smart alternative to traditional inheritance fees, reports Se Loger, Dec 16, 2023. When it comes to favoring a particular heir, the approach is relatively simple. However, the situation becomes more complicated when multiple children come into play: A donor who chooses to favor one offspring at the expense of others must ensure that justice is restored by asking the recipient to compensate his brothers and sisters. This form of donation does not change the heir’s share of the inheritance, but represents a fee-free advance and thus minimizes future financial impacts. However, in order for this gesture to become a reality, the donor must meet certain conditions: be of legal age, have all their mental and legal capacities, while the recipient must be able to accept the gift.

The question of acquiring housing on behalf of a minor child arises frequently. Minors who do not have the legal capacity to acquire property require the representation of their parents or guardians. Alternatives such as the creation of a family SCI or joint ownership offer solutions that allow minors to participate in the purchase of real estate. Parents perform legal administration over the minor’s property, they authorize acts of preservation, administration and disposition. Buying real estate falls into this last category. In the case of a real estate loan, authorization from a guardian judge is necessary. In the absence of an agreement between the parents, this authorization is necessary even without a loan.

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A simple solution: joint ownership

Family SCI represents an ingenious alternative. A minor can participate with a financial contribution upon agreement of both parents. The advantage lies in the possibility for the child to obtain a loan in the name of ZP, and thus the loan does not have to be approved by the guardianship judge.

Joint ownership, a regime where property is jointly owned by several people, offers a simple solution without unnecessary formalities. However, when financing real estate, one must be fair in order to avoid subsequent complications. In conclusion, it is important to emphasize that taking out a loan in the name of a child, a minor or minor, is illegal. Therefore, the idea of ​​taking a home loan in your child’s name should be ruled out.

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