Carefree: With dividends in your pocket, a sea voyage can be fun. And on a cruise you might even be able to shake a leg.
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Usufruct with securities makes it possible to save on taxes through an early donation and at the same time take advantage of interest and dividends. There are a few things to consider.
Oma Petra understands a lot about the stock market. She has placed appearance after appearance and often bought additional shares at the right moment – ideally in a crash. This requires patience and intuition. This is how Petra made a fortune. Her daughter Chiara, who will one day inherit most of her portfolio, is not particularly interested in investing. Grandma Petra is therefore holding on to her securities portfolio, although it is very likely that she will never need the securities to make a living. Therefore, there would be a little-known solution for Petra to transfer the portfolio to the next generation tax-free early by donating it to the daughter and still continue to determine the investment strategy: usufruct.
Many are familiar with usufruct in real estate: the older generation gives away a (rented) apartment, but continues to receive the rental income. Usufructuaries can also secure such a right of use for life for other assets that have been given away, such as cars, shares in companies or securities. Usufruct with securities then works like this: In our case, Petra gives her daughter Chiara the securities account, so the daughter becomes the owner of the securities, which hopefully will increase in price on average over the years, as in the past, and maybe even more from time to time due to a company spin-off dump shares. As the usufructuary, Grandma Petra continues to receive the income, i.e. interest, dividends and possibly capital gains, which are achieved annually with the securities. This can be used to finance one or the other cruise.