Inter vivo transfer


The inter vivos transfer is the change of ownership of an asset or right. The Latin expression inter vivos is used since it is a transfer of a good between living people.

An inter vivos transfer can be made directly between people or if both are duly represented.

It is important to differentiate between inter vivos transfers and mortis causa transfers. A clear example is the difference between donation and inheritance or bequest. In the donation the transfer of the property occurs between living people, while in the inheritance or legacy the change of ownership will only take place when the donor dies.

Classes of inter vivos transfers

Inter vivos transfers can be of two types: onerous and free.

Onerous: There is consideration for the change of ownership of the goods or rights. The transfer of an asset or right causes the payment of a tax (Patrimonial Transfer Tax). Whoever receives the goods or rights will be obliged to pay the tribute.

Free: There is no consideration whatsoever for the transfer of goods or rights. The recipient must pay the Tax on Donations.

If the compensation consists of a new transfer of goods or rights in favor of the first transferor, we would be facing an exchange.

What assets can be transferred inter vivos?

The assets that can be transferred inter vivos are:

Private goods:

  • Property and real estate rights with and without consideration (rent, usufruct, right of habitation).
  • Life insurance contracts (transfer of contracts, review of subscription rights).
  • Accounts and deposits (contracts for the benefit of third parties, trust agreements, agreements in the case of joint accounts).
  • Goods abroad.
  • Consideration of a possible resource by social assistance.
  • Claim rights (pre-payment, sale, insolvency).

Company assets:

  • Clarification of company contracts regarding the consequences of succession law.
  • Tax consequences of the succession clauses.
  • Business dismemberment and its consequences in terms of succession law.
  • Seizure and review of asset management companies at the national and international level.

Tags:  Colombia Spain Commerce 

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