Will or deed of gift: how to save money when transferring housing in Russia
Real estate can be transferred by will or as a gift. These documents are drawn up according to different rules, the costs for them also differ.
You can transfer real estate to a relative or close people in different ways: under a purchase and sale agreement, a deed of gift, bequest, inheritance agreement or rent. Each of the methods has different consequences for the owner and the recipient, the costs for their registration and registration are also different.
We will tell you how you can transfer an apartment and other real estate to relatives or close people, which method may be cheaper depending on the situation.
How to transfer property
Any property, including real estate, can be inherited in four ways: by will, by inheritance contract, by law (if there is a relationship with the deceased), if there are grounds that give the right to a mandatory share of the inherited property. The meaning of inheritance lies in the fact that the property is transferred to the heirs after the death of the testator, explains Dahanago Nagoyeva, partner of the law firm Bishenov & Partners. According to her, all other methods of transferring property to relatives (under a sale and purchase agreement, a donation agreement) do not apply to inheritance.
Any transaction involving the transfer of rights to real estate from one relative to another is legal, and all types of transactions are used in relation to registration of rights to conditionally inherited property, says Dmitry Shevchenko, partner of the Zamoskvorechye Law Office.
There are four ways to transfer property, including real estate, by inheritance
A common way to formalize relationships with regard to inherited property. The main disadvantage is the cost of registration of the rights of the heir upon entering the inheritance, which is 0.3% of the value of the property, but not more than 100 thousand rubles. for close relatives, and 0.6%, but not more than 1 million rubles. for other heirs.
To make a will, additional fees will be required for various services. In Moscow, in 2020, the execution of a will with a notary is 2.4 thousand rubles, a joint will of the spouses - 3.9 thousand rubles. State fee for a will - 100 rubles. You may need additional funds to pay for the services of a notary or a lawyer for drafting the text and consulting. They differ depending on the regions and companies, tariffs for notary services in Moscow are set by the Moscow City Notary Chamber, explains Viktoria Bolshakova, a lawyer at the Yukov and Partners Bar Association. The exact cost of additional services can be found on the website of the region's notary chamber.
“Some categories of citizens are exempt from paying the state duty or pay it in the amount of 50% of notarial actions. The amount of the state duty does not depend on the method of inheritance, but the most reliable is inheritance by will, ”says Nagoeva.
At the same time, this method is notable for its instability and lack of guarantees for the heir, since, taking into account the mood of the testator, the will can be revoked at any time or another will be issued, which automatically cancels the previous one, Shevchenko said. In addition, according to him, the will does not apply to heirs who have a mandatory share in the inheritance, which include minors and disabled (including pensioners) close relatives of the testator.
A will is the most common way to register an inheritance
This method is often used to register conditionally inherited property. Donation is simple and free of charge. In addition, donation between relatives does not create a tax base, unlike a will. If the gifted person is not a close relative, then the gift tax will be 13% of personal income tax of the value of the inheritance.
“If the real estate belongs to the sole owner, then the donation agreement does not need to be certified by a notary. You just draw it up in writing, sign it with your grandson and go to Rosreestr, "says Viktoria Bolshakova, a lawyer at the Yukov & Partners Bar Association.
Any registration of ownership of real estate includes a state duty for its registration, which is 2 thousand rubles, when donating a house, you will need to additionally pay for the transfer of land (from 350 to 2 thousand rubles, depending on the purpose of the site). The service of an extract from the house book is provided free of charge. For the provision of information from the USRN, a fee of 300 rubles is charged, and the cost of other services in any case varies depending on the terms of the transaction, explains Bolshakova.
Execution of contracts and agreements on the alienation of immovable property (sale, exchange, donation, compensation, contribution to the authorized capital, etc., except for rent and life support contracts with dependents) costs 6 thousand rubles.
This is a cheap method, but donation poses a particular danger to the donor, since after the sale the donor loses all rights to the property, which can be used by the donee in the
ed to the donor, says Shevchenko. According to the lawyer, there are frequent cases when there was an agreement to provide the donor with the right to live in the donated housing, but after the donation, these agreements were not respected, which led to protracted and mostly unsuccessful litigation.
If the real estate is 100% owned by one person, then the donation agreement is very simple to draw up and execute
A relatively new way of regulating hereditary relationships. Allows you to establish the conditions and obligations that must be met by the parties during the life of the testator, which can guarantee the interests of all parties to the inheritance contract. The negative point is its relative high cost when entering into an inheritance by analogy with a will, as well as the presence of a mandatory share in the inheritance from other relatives, which is not removed by the terms of the inheritance agreement, Shevchenko said.
Registration of real estate by inheritance
To register an apartment, you first need to obtain a certificate of inheritance. To do this, you need to contact the notary at the last place of residence of the testator within six months from the date of the death of the testator or the date of entry into force of the court's decision on recognizing him as dead, they explained to the department of Rosreestr in Moscow. Preparation of applications by a notary for an inheritance case will cost 1,000 rubles. According to the will, providing for the creation of a hereditary fund, regardless of the type of property, 17 thousand rubles will be required. Obtaining a certificate of certification of the powers of the executor of the will - 2 thousand rubles.
“After checking the documents, the notary starts the inheritance case in the register of inheritance cases and in the unified information system of the notary. All subsequent applications for the inheritance of the remaining relatives will already be attached to the case filed by the notary. Applications for inheritance can be submitted by heirs within six months from the date of opening the inheritance, ”Nagoyeva explains. After six months from the date of opening, the notary issues a certificate of the right to inheritance.
The inheritance contract has become a new way of regulating inheritance relations in Russia.
A contract of life annuity or lifelong maintenance with a dependent is often used to formalize relations to real estate between various people, both relatives and non-relatives. In accordance with the agreement, the annuity recipient transfers his property into the ownership of the annuity payer, who in turn undertakes, in exchange for this, to periodically pay the annuity recipient a certain amount of money. The term of the obligation to pay is determined by the life of the annuity recipient or the third person (s) indicated by him.
The agreement of the parties must be certified by a notary. Any options and cases can be written in it to achieve guarantees of each of the parties to the transaction. The size of the state duty is 0.5% of the value of the property, but not more than 20 thousand rubles.
Purchase and sale
The transfer of an apartment under a sale and purchase agreement is a paid transaction that involves payment. Moreover, it must be done at market value. If the transaction goes through without payment or at a reduced cost (below the cadastral value) by 20% or more, then the tax office may have questions. This threatens the buyer of real estate with additional taxes at a rate of 13% on the amount of tax benefits he received. Also, the transaction can then be challenged.