Practical guide on how to make a real estate donation
Real Estate donation is a generous gesture that allows you to transfer the ownership of a property to another person or entity without requesting compensation in return. This article will provide you with a brief practical guide on how to make a real estate donation correctly and legally.
- Consult a professional:
Before proceeding with a real estate donation, it is advisable to consult a lawyer specialized in real estate or a notary. These professionals will help you understand the legal and tax implications of donating, ensuring that you follow the necessary procedures and requirements correctly.
- Property valuation:
Determine the value of the property being donated. You can enlist the services of an appraiser or real estate agent to get an accurate estimate. This assessment will be useful in calculating any taxes or fees to be paid in connection with the donation.
- Drafting of the deed of donation:
The deed of donation is the legal document that formalizes the transfer of ownership of the property. It is essential to draw up this document with the assistance of a legal professional. The deed must contain detailed information about the property, the parties involved, the declaration of donation and any other clause necessary to regulate the transaction.
4. Registration of the deed of donation:
The deed of donation must be registered with the competent land registry office. This step will give publicity to the act and ensure its legal validity. Certain documents will be required, such as copies of the deed itself, identity documents of the parties involved, and any additional documents required by local law.
- Tax return and taxes:
After donating, you may need to file a specific tax return and pay any taxes or fees due under the tax laws of your jurisdiction. It is important to consult a tax professional to obtain up-to-date information on tax regulations in relation to real estate donations.
Real estate donation can be an act of great generosity and solidarity. Following a proper procedure and getting the assistance of qualified professionals is crucial to ensure that the donation is legal and that all tax aspects are properly addressed. Remember to consult a lawyer or notary to receive personalized advice based on your specific circumstances. It is important to underline that the properties received with a deed of donation are to be treated differently in case of sale of the same. Relying on experts in the field guarantees not to incur sanctions or family disputes related to the succession of the inheritance.
Article written by Mariateresa Confalonieri