Family SCI: buy, manage and transfer real estate
Discover the advantages and specificities of a family SCI, a structure that allows members of the same family to manage one or more real estate.
A family SCI is a structure that allows members of the same family to manage one or more real estate.
A family SCI is a civil society created by members of the same family.To create an SCI, two people are sufficient.The articles of association of the company must be drawn up by a legal professional (a notary or a lawyer), and must indicate in particular who will be the manager of the company These statutes are very flexible, which allows a la carte management according to the needs of each family For example, it is possible that the children are associated (if they are minors , it is necessary to obtain an authorization from the guardianship judge), but to give the right to vote only to the parents.
Reduce inheritance costs
Setting up a family SCI can be advantageous when it comes to transmitting real estate: if you decide to donate shares in an SCI, the structure's debt will be deducted from the shares you transfer, while the debts are not not deducted in the case of a classic real estate donation.The formalities for donating shares are also simpler and less expensive than those concerning a classic real estate donation.In addition, SCIs allow a progressive donation, a system impossible outside of this context.
Building a family heritage
The family SCI can also be a way to create a heritage for your children, without them needing to advance their own funds.They can indeed be associated without having to contribute: the company takes out a mortgage and repays monthly payments thanks to the rents generated, for example, in the case of a rental investment.Ultimately, your children will be able to become owners without having put equity on the table.
Posted Date: 2020-08-25