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What is a non-profit bequest?

A technique called "non-profit bequest" allows you bequeath to part of your assets to Medics without Vacation and at the same time allow your own heirs to benefit.

How does the "non-profit bequest" work?

The "non-profit bequest" is specified in article 64, paragraph 2 of the Belgian Death duties Code. This stipulates that you can lay down in a will that person X receive a bequest, free of death duties, provided that person Y pays the death duties. The advantage of the “non-profit bequest” is in the difference of death duties that a private person pays (up to 65%) compared to MWV (8.8% in Flanders and 12.5% in the Brussels Capital Region).

Example:

Henry G., from Ghent, is 65 and widower. He has no family. By will he leaves 25,000 euro to his friend Peter B.

With a normal bequest:

Henry G. leaves 25,000 euro to Peter B. and nothing to MWV. After his death the inheritance is divided as follows:

  Peter B. MWV the State
Gross bequest 25.000 € 0 €  
Death duties 11.250 € 0 € 11.250 €
Net benefit 13.750 € 0 € 11.250 €

With a non-profit bequest:

Henry G. leaves 15,000 euro to Peter B. and 10,000 euro to MWV (which pays all the death duties).

  Peter B. MWV the State
Gross bequest 15.000 € 10.000 €  
Death duties 11.250 € 0 € 11.250 €
a. on 15.000 € x 45%   6.750 € 6.750 €
b. on 10.000 € x 8,8%   880 € 880 €
Net benefit 15.000 € 2.370 € 7.630 €


In this example, Henry G. is able to bequeath a larger sum to his friend and make a donation to MWV.

In every case, so as not to disadvantage any of the parties, the "non-profit bequest" technique can involve complicated calculations. Always consult your civil-law notary.