Aviva announces the launch of Aviva Donation, an option offered to all Aviva life insurance policyholders who want to combine the benefits of giving a gift to a family member with the benefits of life insurance.
Aviva announces the launch of Aviva Donation, an option offered to all Aviva life insurance policyholders who want to combine the benefits of giving a gift to a family member with the benefits of life insurance.
Aviva Donation is a wealth management solution that allows investors to provide for the future of their children or grandchildren, while enjoying from the benefits applicable to donations and life insurance. This option works as follows:
- The donee (child or grandchild) takes out a multi-fund policy from the Aviva range with the Aviva Donation option
- The donor pays the sum representing the inter vivos gift into the policy, benefiting from the tax advantages linked to donations1
- Donors may specify, in a separate agreement, what the funds are to be used for and the date from which they will become available. This date determines the age3 the donee will have reached when the donor hands over responsibility for the policy (redemption, arbitrage, pledging, etc). After this date, the donee has complete control over the funds.
The Aviva Donation option offers specific benefits, for both the donee and the donor:
- The donee has funds for key life events (such as studying for a degree, getting married, buying a home, etc), while benefiting from the favourable tax terms applicable to gifts and life insurance2
- The donor transfers wealth to living relatives, minimising subsequent inheritance tax costs through inter vivos gifts. The donor is fully assured of the use of the sum given, which can be specified in an agreement.
Another major advantage lies in the fact that the inter vivos gift that underlies the option does not require the involvement of a solicitor (except in the case of a complex donation). Consequently, the process is very straightforward, and can be carried out in just a few steps. The donor simply explains his or her plans to an insurance adviser, who can provide information and help set up the Aviva Donation option, quickly and easily.
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1 Tax arrangements for gifts make it possible to give a tax-exempt gift every six years, for the following amounts:
- Up to €50,000 per parent to each child
- Up to €30,000 per grandparent to each grandchild.
2 For amounts larger than the allowance, the excess portion of the gift is taxed according to a scale that takes into account the family relationship and the age of the donor:
| 1 | 2 | 3 | |
| Allowance (tax-exempt amount) | Taxable tranches (tax-exempt amount) | Rate of taxation | Tax reductions (depending on the age of the donor) |
| Direct kinship | - 50% reduction in taxation when the donor is under 70 years old | ||
| - Between parents and children: €50,000 | <€7,600 | 5% | |
| From €7,600 to €11,400 | 10% | ||
| - Between grandparents and grandchildren: €30,000 | From €11,400 to €15,000 | 15% | |
| From €15,400 to €520,000 | 20% | ||
| - Between great-grandparents and great-grandchildren: €5,000 | From €520,000 to €850,000 | 30% | |
| From €850,000 to €1,700,000 | 35% | ||
| Above €1,700,000 | 40% | - 30% reduction in taxation when the donor is under 80 years old | |
| Between relatives up to the fourth degree (inclusive) | |||
| Donation to nephew or niece: €5,000 | On the portion of the gift that exceeds the allowance | 55% | |
| Disabled persons | |||
| Whatever the family relationship: €50,000 (cumulative with the other allowances) | Depending on the family relationship with the deceased or the donor | ||
Tax on gifts is normally payable by the donee; however, it can be paid by the donor, without being considered an additional gift.
3 This age can be between the 18 and 25 birthdays of the donee.
Press Contacts:
Aviva Vie
David Chenu
Telephone: +33 (0)1 7662 6792
E-mail: david_chenu@aviva.fr
HDL Communication
Valérie Dudoit
Telephone: +33 (0)1 5865 0118
E-mail: vdudoit@hdlcom.com
Notes to editors:
About Aviva
Aviva is one of Europe's leading providers of life insurance and pensions with strong positions in other markets around the world. Based on gross premiums at 31 December 2005, Aviva is the world's fifth-largest insurance group. Aviva's principal business activities are: life insurance and long-term savings, fund management and general insurance. At 31 December 2006, Aviva had turnover of €61.9 billion and €543 billion of assets under management.
With more than 150 years' experience in France, Aviva is one of the top 10 players in the insurance market. Aviva operates with a balanced multi-distribution model, which has proven hugely successful: 875 general agents, 1,800 branch staff, 400 life insurance advisers, 1,000+ brokers, and its partners (Union Financière de France and Médéric). Aviva France also has major partners such as AFER, the largest savings association in France, and Crédit du Nord. Specialising in unit-linked products, Aviva is recognised for the excellent performance of its long-term funds and solid commitment to its customers through its Good Advice approach. Aviva employs more than 3,200 staff. At 31 December 2006, Aviva France recorded consolidated sales of €6.4 billion (based on PVNBP), a consolidated operating profit of €689 million (based on the embedded value - EEV/IFRS standards) and managed assets worth €72.9 billion.