PER, an effective tool also at the time of succession

The retirement savings plan (PER) is devoted to building retirement capital to supplement one’s pension when the time comes. But who knows what you will really need when the deadline is fifteen, twenty, or even thirty years? All the more so as the PER, due to the tax deductibility of payments, by nature attracts highly taxed savers, those with good income. They might not need that savings pocket. Households also owning other investments (life insurance, Pinel real estate or others) could also be tempted to use the income from these investments as a priority.

“The principle of PER is a tax deferral, emphasizes Gilles Belloir, managing director of the online broker Placement-direct.fr. When withdrawing, the tax savings are returned, at least in part according to the marginal tax bracket at retirement. ” Indeed, the sums withdrawn from the plan once at retirement are taxed, at the scale for the amounts corresponding to the payments, at the “flat tax” of 30% for the earnings.

To continue to benefit from the tax savings, you must therefore keep your savings in the plan. Under these conditions, the question of keeping your PER instead of drawing from it may arise. It is also important to know how the amounts still in the plan will be treated at the time of death.

“We must take into account the fact that when we die, we do not return the tax benefit obtained on entry. And the icing on the cake: earnings are not subject to social security contributions. »Gilles Belloir, from Placement-direct.fr

Most PERs look like multi-vehicle life insurance policies, but the estate treatment is not quite the same. It depends on the age of the policy holder upon death. Before age 70, the rules are those that apply to life insurance. Each beneficiary has an allowance of 152,500 euros (then tax at 20% up to 852,500 euros, then 31.25% beyond).

In the event of death after 70 years, a reduction of 30,500 euros applies to the capital for all beneficiaries and contracts. This allowance includes all life insurance contracts (for premiums paid after 70 years) and PER subscribed by the insured. The balance is included in the death lump sum subject to the inheritance tax scale. Contrary to what prevails with life insurance, the reduction of 30,500 euros applies to all capital and not only to payments. The winnings are therefore taxed.

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