Life insurance is undoubtedly the best asset for your cash flow. Combined with dismembered donations, or other, the wealth advisor has many solutions to optimize the tax applied during a succession, which is constantly evolving. However, once these mechanisms are used, what options are still available to prepare the best way for the transmission of your wealth?

What if we talked about forest investment? In addition to giving meaning to your investment, article 793 of the General Tax Code (CGI) establishes the so-called Monichon scheme. It allows you to benefit from an exemption of 75% of the transfer tax free of charge (donation, legal, succession) for land in nature of wood and forest.

Note: In addition to the estate benefit, an exemption of up to 100% of the taxable base can be obtained for taxpayers liable to property tax (IFI).

In addition to the tax aspect, this type of investment has many other advantages. It allows you to diversify your wealth by backing a class of tangible assets in France. It also targets performance, the potential for return from the possible increase in price over time. Indeed, as forests are a rare asset class, they are coveted by large institutions eager to make green investments that will lower their carbon footprint. For the wood falling, these are reasonable and allow to pay a part of the company’s management costs.

In view of the risks now, in addition to those related to liquidity or volatility of share prices, forests can be affected by natural hazards. Fires and storms are insured, unlike insect losses, which are controlled by the diversification of tree species in each forest.  

Although this type of investment has many benefits and relatively few risks, it is essential to remember, however, that this asset class is proposed for diversification and will only make sense if all the components of your wealth are considered. In addition to this parameter, it is essential to select recognized actors who select forests of quality and diversity.

Today, the members of the firm are at your disposal to integrate this type of investment into a global wealth strategy tailored to your needs and desires.

Don’t wait any longer and contact us at contact@finankap.com

Finankap Group, always by your side to give life to your desires.