What does it consist of?

Lifetime donations, also known as parental donations to children, are a method of transferring assets, similar to inheritances.

The main objective of this process is to document the transfer of an asset to another person.

These donations are made at no cost to the recipient, who is not required to pay any price or provide any compensation. However, in some cases, they may include certain conditions or charges, but the value of the received asset always exceeds any imposed obligation.

Such donations can be granted to both individuals (whether family members or not) and legal entities (such as NGOs, foundations, etc.).

Types of Donations

  • Collatable Donation
    A transfer made during the donor’s lifetime to an heir, which must later be reintegrated into the inheritance to calculate distributions upon the donor’s passing.

  • Non-Collatable Donation
    Given as a gift, without requiring the recipient to compensate other heirs.

  • Pure Donation
    The donor freely gives part of their assets without imposing conditions or obligations.

  • Onerous Donation
    The donor establishes conditions that reduce the amount of the donation, imposing certain obligations on the recipient.

Required Documentation

  • A valid national ID card or passport must be presented.

  • To ensure eligibility for tax benefits, it is advisable to provide proof of certain circumstances. For instance, in family relationships, it is essential to verify the degree of kinship, which requires the Family Record Book or a birth certificate. Kinship may also be confirmed through a declaration.

  • If the donation involves real estate, proof of ownership must be provided, such as a property deed or an extract from the Property Registry obtained through a notary.

  • If the donation involves a movable asset, such as money, a check or bank transfer receipt must be presented as proof of payment, and the deed must include the account from which the donated money originated.

  • For vehicle donations, ownership documents are required, while for shares or company holdings, a deed of incorporation or a sales agreement for those shares is typically needed.

In what situations can this service be used?

Donations can be utilized in various situations and contexts, including:

  • Providing support to family members.

  • Contributing to charitable organizations.

  • Estate planning.

  • Obtaining tax benefits.

  • Transferring ownership between individuals and entities.