FURTHER EXPLANATION · 2 MIN READ
First distinguish the rights
After a gift with reserved usufruct, parent and child do not have the same right. The usufructuary may use the property and, within the deed and the law, receive its income. The bare owner owns the property without the current right of use. Who must bear a renovation invoice therefore does not follow from the family relationship alone.
Start with the gift deed. It may state how future works, ownership of new structures and costs are handled. The type of work also matters. Routine maintenance, an urgent repair and a major renovation may be treated differently in law. There is no single allocation formula for every case.
What happened in the Flemish decision?
The Flemish Tax Administration published advance decision VB 26085 on 5 November 2026. In that one case, a parent had retained the usufruct and the child had received the bare ownership. The deed valued those rights at 38 percent and 62 percent. The parties wanted a major renovation and each intended to pay according to that ratio.
They planned a joint project account. Each would transfer the agreed share from their own account. Contractors would issue invoices in both names and state their ratio. On exactly those facts, the Flemish Tax Administration found no taxable movable gift and no tax abuse. The decision concerned inheritance tax only. It did not confirm the civil-law validity of the clauses and did not rule on other taxes.
One case-specific example
In the described case, the usufructuary paid 38 percent and the bare owner 62 percent. This is a concrete case-specific example, not a general right or a percentage that other families can automatically adopt. A different deed, valuation, renovation or financing may lead to a different allocation.
Why does the evidence matter? If one party bears costs that mainly benefit the other economically, a later dispute may arise about repayment, an additional gift or the tax treatment. Clear prior arrangements show who finances which value and why.
What should you prepare before the works?
Gather the gift deed, ownership deed, quotations, permit documents and a list of the planned works. Record for each cost who pays, from which account and in whose name the invoice is issued. Also record what happens with additional works, a sale or the early end of the usufruct.
Notariaat Wellens can review the deed, the works and the payment method together. This shows before the first invoice which arrangements still need clarification and which evidence to keep. Would you like to know more? Make an appointment and bring the deed and quotations.