An occasional gift

In the complex landscape of donations and occasional gifts, recent case law plays a crucial role in distinguishing these two concepts. Traditionally, there were two criteria to identify an occasional gift: the occasion in question and the relationship of the gift to the giver's assets. A judgement by the Ghent Court of Appeal on 22 March 2022 added a third, significant criterion: the usual behavior of the donor himself. 

This addition is of great importance, especially with the recent legislative changes that extended the suspect period of unregistered gifts from three to five years, effective from 1 January 2025 (in the Flemish Region) and from 1 January 2022 (in the Walloon Region). The addition of the third criterion has implications for the calculation of inheritance tax and the civil settlement of estates.  

John’s case study aptly illustrates this point. John used his group insurance to regularly make gifts to his children and grandchildren. After his death, the question arises whether these gifts should be regarded as donations, with all the tax and civil law consequences that this entails. With the addition of the third criterion, it is now also considered whether John usually made such gifts. This could be a decisive factor in how these gifts are interpreted by the tax authorities and in court. 

This development highlights the need for accurate Estate Planning. Properly understanding these criteria and recent legal changes can help families avoid facing unexpected taxes and ensure that the estate is handled according to the deceased's wishes. 

The interpretation of what constitutes an occasional gift is increasingly complex, and highlights why it is so important to stay up-to-date on recent case law and tax regulations.  

Need more info or concrete advice on this? 

If so, do not hesitate to contact Rutger van Boven and his Estate Planning team.