The capital to be insured equals the estimate of any death duties payable by the donee in the event the donor dies within three years of making the gift, with at least EUR 5,000 per policy.
Given that any death duties payable on the gift depend on the total assets transferred to the donee on the death of the insured/donor – at progressive rates – and that these assets could increase further prior to death, the estimate of the death duties to be covered as part of the gift is left to the discretion of the client.
A specific case:
Directly and at the maximum marginal rate of death duty, a sum insured of EUR 125,000 provides cover for a gift of more than EUR 416,000 in Brussels and the Walloon region and more than EUR 462,000 in Flanders. If the gift is the sole basis for calculating the death duties, these progressive rates apply: insured capital of EUR 125,000 in this case corresponds to an amount gifted of about EUR 630,000.