Question to an expert
Can I make accommodation available to a parent or child?
The provision of accommodation for the benefit of a parent or ascendant is authorized by law. There is then no rental contract. In return for this, no property charge is then tax deductible and no housing assistance can be obtained. Please note that this provision can be reclassified as a donation if the parent has sufficient means to pay rent.
The provision of property free of charge by the child to an ascendant prevents him from receiving income equivalent to the rent he could have obtained if the property had been rented. It can then be accepted that this equivalent in value is treated as maintenance for the child in favor of the parent. As such, the child then obtains a right to tax deduction, knowing that for this to be the case, parent and child must constitute two separate tax households.
Temporary donation of usufruct
Regarding home insurance, the child can take out insurance as if he occupied the accommodation. But it would be wise for the parent to take out civil liability insurance to cover the damage they could cause to third parties. Otherwise, the parent usually insures himself, as an occupant free of charge, against rental risks such as the risk of water damage, fire, explosion, etc.
An alternative is possible through a temporary donation of usufruct. The child subject to property wealth tax then saves money and the parent is liable for maintenance and repair work, but also for local taxes.