Transferring real estate during one’s lifetime often seems like a smart strategy — it can reduce future tax burdens and help one’s children. But behind these seemingly generous intentions may lie unexpected consequences. Former notary Coralie Daven shares a case where such a “gift” could have turned into a true financial nightmare.
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🏘️ TWO APARTMENTS, TWO SURPRISES
In 2021, 68-year-old Laurence came to Coralie for advice on how to transfer two apartments in Antibes to her daughter. Each unit, around 65 m² and valued at €350,000, was used for short-term rental, bringing in a yearly income of about €50,000. On the surface, it looked like the perfect gift. Her daughter, who worked in advertising, could benefit from a significant financial boost. Everything seemed normal… at first.
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⚠️ HIDDEN DEBTS — HIDDEN DANGER
Upon reviewing the documents, it was discovered that both apartments were encumbered with legal mortgages from the tax authorities — due to €20,000 in unpaid tax debts by Laurence. These debts “follow” the property, even when ownership changes. In essence, her daughter would inherit the properties along with the debts — debts she had no part in creating.
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⛓️ FALLING INTO A DEBT TRAP
Had the daughter accepted the gift, she would have had to pay off the debt to avoid accumulating interest and the risk of property seizure. In case of non-payment, the tax office could have auctioned off the properties. The process has no fixed timeline — it depends on factors such as the debt amount, the debtor’s financial situation, and ongoing negotiations with the tax authorities.
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💸 A COSTLY GIFT — LITERALLY
In addition to the debts, the donation itself would have cost over €41,000: €14,789 for drafting the deed and €26,411 in donation taxes. Laurence would have ended up paying more than double the amount of her debt just to complete the transfer. Her rental income barely covered her growing debt, and her pension was modest.
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🛑 SOMETIMES “NO” IS THE BEST ADVICE
Coralie Daven proposed an alternative: sell one apartment to pay off the debt, and then consider transferring the other. But Laurence wasn’t comfortable with that option. After an honest conversation, she realized the risks and chose to take no action. A few weeks later, she even contacted Coralie to thank her for the advice and transparency.
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🧭 NOT EVERY PATH LEADS TO A GIFT
This case proves that not every inheritance is a blessing. Sometimes, the wisest gift is the one you don’t give — at least not yet. “We don’t just process documents,” says Coralie. “Sometimes, our job is to say no — or to advise waiting.” And sometimes, that’s what saves families from long-term financial consequences.
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