What does it cost to make a will?

The inheritance tax differs per Region and depends on the family relationship with the beneficiary. In Wallonia, giving a legacy to your godchild or your best friend can be quite expensive, tax rates can go up to 80%.
Non-profit organizations can, however, benefit from a favorable rate. A non-profit organization has a tax rate of 7% in Wallonia, 12.5% or 25% in Brussels and 8.5% in Flanders.
Thanks to these favorable rates, it is possible to kill two birds with one stone with one legacy (optimization of the tax rate and supporting a good cause).

Let us explain it:

Under certain conditions, the duo legacy makes it possible to support a good cause and reduce the tax burden of your heirs. This applies especially (but not exclusively) to the situation where they do not benefit from the rates that apply to a direct family relationship.
With a duo legacy you make two legacies. You transfer part of your inheritance to an association that you designate as a general heir, which makes them responsible for the inheritance tax. Subsequently, the association must donate part of the money to the other legatees and heirs.

An exemple

Helena is 75, lives in Brussels, and has no close relatives, but wants to leave a legacy of € 60,000 to her good friend Isabelle whom she does not live together with.

A. Without duo legacy

Since she is not related to Helene, Isabelle has to pay € 25,500 in inheritance tax on the € 60,000 inheritance:

  • 40% on the 1st bracket up to € 50,000, so € 20,000 and
  • 55% on the second bracket of € 10,000, so € 5,500.

Isabelle therefore only has € 34,500 net.

B. With duo legacy

Suppose Helena opts to donate € 22,000 to a charity and € 38,000 to her friend Isabelle through a duo legacy.
In this case the charity pays all inheritance taxes (19 036 €), being:

7% on his own bequest of € 22,000, ie € 1,540 and

40% on Isabelle’s bequest of € 38,000, or € 15,200.

Isabelle not only receives more (€ 38,000 net instead of € 34,500), but Helena can also do a good deed in favor of a charity (€ 5,260 net).

Example from Donorinfo.be

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