Top Tips on French Laws of Succession

 The tips below are a meant as guide to the French laws of succession. For specialist legal advice and more information on the French laws of succession, reviewing your Will and French property contact Sarah Bogard.

1. Find out how the French succession rules will apply to your estate – the first legal rule is that you cannot disinherit your children.
2. Check out the best legal structure to own property before you buy – this can save you inheritance tax and give you more choice over who inherits.
3. A French marriage contract or ownership en tontine can sidestep statutory inheritance rights of children, allowing the survivor to inherit the whole property.
4. Unmarried or same sex couples will suffer 60% French inheritance tax – investigate signing a Pacte Civil de Solidarité (PACS) to get a full exemption.
5. Unmarried couples and civil partners must make a Will in favour of each other if they want the survivor to inherit anything– they have no French inheritance rights
6. Don’t forget to review your Will – either include French assets in an English Will or make a separate French Will.
7. Stepchildren will pay French inheritance tax at 60% when inheriting from a step-parent. Get advice on how you can reduce this tax rate.
8. Consider both French and English succession and tax rules together to do the best estate planning you can.
9. However property passes on death, a surviving spouse has the right to continue living in the home for one year, but only if it was the main family home.
10. To avoid penalties, the inheritance tax return must be lodged with the French tax authorities within 6 months of death (1 year for non-French residents).
11. Since August 2007 there is no French inheritance tax on transfers on death between married couples and those who have entered into a PACS agreement.
12. A life policy can help pay inheritance tax without increasing the tax bill - particularly useful for unmarried couples
13. A married couple resident in France for more than 10 years will automatically assume the French community of property regime under the Hague Convention of 1978, unless they specify otherwise.
14. Watch out when making lifetime gifts - they may not be fully exempt from French inheritance tax.
15. Get advice when dealing with the administration of an estate - correct decisions about the estate distribution can reduce the tax bill.

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