Handing out presents is fun. But certainly when you want to donate a (large) amount of money, there are a number of things that you have to take into account so that the recipient can really be happy with the gift. With the Prepaid Gift Card this happens to be the best gifting choice.
Only donate money that you can reach
Money that is stuck in your house or investments is best donated only if the money is actually on your checking account. Do you want to donate now? Then choose a gift on paper.
Think about yourself
Donating an amount to the children or another loved one is of course great fun, but also think about yourself. Do you really have this amount left, even if you look at any future plans? Do you have enough left over to deal with unexpected setbacks? You can arrange at the notary that you can reverse the donation if your circumstances change. Tell this to the recipient. Then he or she knows that the amount cannot simply be spent.
Do you give money or things to one of your children? Prevent the other children from feeling passed over. Be open about the donation (or loan). You can straighten out differences in your will, so that all children ultimately receive the same amount.
Choose whether you want to donate through the notary
A donation through the notary has many benefits for both the donor and the recipient, such as tax breaks. You also have more control over what happens with the gift. Of course you can also arrange the donation without a notary. Then record the donation in your own agreement: a private deed.
Take the circumstances of the receiver into account
A donation is not always convenient. For example, if the recipient has a benefit. Then there is a chance that he or she will receive less benefit. Also take into account the amount that you donate. If you donate above the tax-free amount, the recipient must pay tax. You can also pay that gift tax.
Donate together with your partner
Spouses must always give each other permission to make a donation. That is regulated by law. Are you married or registered as a partner in a community of property? Make sure that your partner also puts the signature under the deed or agreement in which you arrange the gift.
Note the tax-free amount
Do you want to give your child and daughter-in-law / son a nice amount on which they do not have to pay taxes? Bear in mind that the Tax and Customs Administration considers a married couple (or registered partnership) as one person. Make sure that your donations add up to the tax-free amount.
Prevent an ex from taking advantage
What happens to your donation if your child gets divorced? You can have it registered at the notary that your child does not have to share the gift with his or her ex. You can also arrange for the ex to receive money.