The importance of talking money to our kids
We all need a financial literacy. Teaching children the basics about how money works, its value and why to save it can spare them so much hassle as adults.
As a form of union that is less restrictive than marriage, the PACS has a number of advantages. In fact, the partnership offers legal recognition of a couple as well as social security for the partner who does not have any. In tax matters, the partners enjoy the same benefits as married couples. Sophie and Marc can opt for collective taxation according to tax class 2, but only in the year following the conclusion of their civil union and provided they've lived under the same roof during this period.
It could be useful for our love-birds to draft up a will. Otherwise, in the event of death, the remaining partner will not be taken into account inheritance-wise. However, if he or she was covered by the deceased's insurance, he or she can claim a survivor's pension. In terms of the matrimonial property regime, each partner owns the property he or she has acquired. Any movable or immovable property whose ownership is not clear, are considered to be under joint ownership. Sophie and Marc can, however, make a written agreement, stipulating the property system they wish to adopt.
As they are not highly knowledgeable when it comes to taxes, the young couple has already made an appointment with their Spuerkeess advisor to better understand the various opportunities provided by the law and to make the right choice for their future. Furthermore and whilst at the bank, our lovebirds plan to open a joint current account.
Another important advantage: after three years of partnership, the rates applied on donation and inheritance taxes are the same as for married couples. Eventually, like married couples, partners enjoy exceptional leave. A detailed list can be found on the official website of the Luxembourg Government www.guichet.public.lu.
To conclude a civil union, there is nothing easier: just make an appointment with the registry office of the city of residence, with a copy of your identity document or passport, and a full copy of your birth certificate. The partnership agreement will be signed the same day before the registrar and then forwarded to the prosecutor's office.
The partnership can also be dissolved at any time and unilaterally. In other words, Marc better be careful to not always leave his socks in the living room! Although... isn't it precisely the minor imperfections and flaws that are charming?