Inheritance and donations

Transfer after death

In such cases, the notary or representative handling the estate must send a letter to BNP Paribas Securities Services (for fully registered shares) or to the financial intermediary administering the shares (in the case of administered registered shares or bearer shares). This letter should indicate the marital status of the deceased shareholder, and request that the shares be transferred into the names of the heirs or sold.

The Sanofi shares will be valued either at the average quoted market price on the date of death or at the average quoted market price for the thirty days preceding the date of death, at the discretion of the heirs. All costs and duties incurred by the heirs are added to the cost of the shares for tax purposes.

Lifetime division

Shareholders may during their lifetime decide to divide some or all of their assets (including their shares) between their own children. Lifetime division allows people to make a gift to all of their children. Such transfers must be made by notarised deed, which must then be sent to BNP Paribas Securities Services (for fully registered shares) or to the financial intermediary administering the shares (in the case of administered registered shares or bearer shares).

Unlike in the case of a gift from hand to hand, the assets are not usually revalued on the donor’s death.

Gift from hand to hand

Shareholders may, during their lifetime, make a gift “from hand to hand”, which involves transferring their shares to the securities account of the beneficiaries. This requires no more than a written declaration, signed by the beneficiary and sent to BNP Paribas Securities Services (for fully registered shares) or to the financial intermediary administering the shares (in the case of administered registered shares or bearer shares).

A gift from hand to hand must be declared to the tax authorities within one month following the date of the gift. Usually, the assets gifted must be revalued on the donor’s death and included in the division of the estate.

Customary gift

Shareholders may make a gift in the form of shares to mark a special event, including birthdays and weddings. If the gift is low in value relative to the donor’s total estate and revenues at the date of the gift, there is no obligation to declare it to the tax authorities and no impact on the donor’s estate at death.

Tax deduction

Lifetime division and gifts are entitled to tax relief once every 15 years:

• €159,325 for each heir, legatee or donee, unable to work in normal conditions of profitability, due to physical or mental, congenital or acquired infirmity (common to inheritance and gift taxes);
• €100,000 for each direct ascendant or child, still living, or representatives if predeceased (common to inheritance and gift taxes);
• €80,724 for gifts between spouses or civil partners;
• €15,932 for gifts between brothers and sisters (common to inheritance and gift taxes);
• €7,967 each for each nefew or niece;
• €31,865 each for gifts to grandchildren;
• €5,310 each for gifts to great-grandchildren.