Estate planning in France

We draft Wills and advise on estate planning structures in accordance with your wishes and interests, taking into account the EU Succession Regulation (Brussels IV) and its impact on the law applicable to your succession.

Where an estate includes assets located in France, we work closely with the appointed French notaire to progress and finalise the estate administration, explaining how French succession rules apply and guiding you through each stage of the process.

Gifts of French property

Gifting French property is a common estate planning tool, particularly in France. One frequently used structure involves retaining a life interest (usufruit) in a property while gifting the bare ownership (nue-propriété) to children or other beneficiaries.

While this type of arrangement can be effective in certain situations, gifts of French property can also give rise to complex legal and tax consequences, particularly where UK tax rules also apply. French ownership structures do not always align neatly with UK tax law, and this can lead to unexpected outcomes if advice is not taken in advance.

We advise clients on:

• Gifts of French property and other French-based assets
• The interaction between French and UK tax rules in a cross-border gifting context

Early advice is essential to ensure that all parties understand the consequences of a proposed gift and that the structure chosen is appropriate for your circumstances.

English and French wills and succession planning

When acquiring property abroad, many people overlook the need to review or update their Will. This can lead to difficulties where different succession laws apply or where a Will does not properly address a cross-border estate.

Failure to plan appropriately can result in delays, increased costs, or disputes between beneficiaries at a time when families are already dealing with bereavement.

Our experts will:

• Discuss with you how you wish your estate to be distributed and advise on any limitations or constraints imposed by the applicable succession laws
• Review the structure of your Will and advise on whether it would be appropriate to put in place a separate French Will
• Where relevant, we can advise on the impact of matrimonial property regimes on your estate planning
• Advise on the application of French succession law and the EU Succession Regulation (Brussels IV), including choices of applicable law

Estate administration and foreign assets

Administering an estate can be significantly more complex where assets are located in more than one country. In France, the involvement of a French notaire is mandatory for the administration of estates involving French assets. For beneficiaries unfamiliar with the French language or legal system, the process can feel daunting.

Our aim is to take away the concerns you have about getting involved in a foreign legal and tax process. We will liaise with the French Notaire for you to sort out the distribution of assets located in France.

Our specialists in administering French estates take the stress out of the process:

• We explain how French law applies to your estate
• We ensure you understand the documents and deeds you will be required to sign as a beneficiary, explaining them to you in English and checking that the drafting is accurate
• Organise the translation of any documents (such as a will and the death certificate)
• Work in conjunction with helping you administer the English estate, or we can work with your probate adviser as necessary

Tax considerations for French assets and relocation

Whether you are moving to France or own assets or financial interests in France, it is important to understand how the French tax system applies and to ensure that your tax obligations are properly managed.

French tax rules may apply to individuals who:

• Are tax resident in France and required to declare their worldwide income to the French tax authorities (with double taxation generally mitigated by the UK–France Double Taxation Convention);
• receive French-source income, such as rental income, employment income or pensions;
• own assets situated in France, including property, even if they are not resident in France.

Many of the French taxes are recognisable as being similar to UK taxes, such as income tax, capital gains tax and inheritance tax. Others may be less familiar, such as wealth tax and social charges, which can apply depending on residency status and the nature of the assets held.

Failure to comply with tax obligations in France can result in penalties and interest being levied by the tax authorities.

Our experts can:

• Advise on the French tax implications arising from property ownership, rentals, disposals, succession, or a move to France;
• assist with the preparation and submission of French tax returns;
• advise on relevant filing and payment deadlines and liaising with the French tax authorities where necessary;
• discuss available options to manage or minimise tax exposure, where appropriate;
• and, advise you on what notifications you should send to HM Revenue & Customs for your tax year of leaving the UK and we can advise you on your continuing UK tax obligations after becoming non-UK resident, or where applicable liaise with your existing UK tax adviser.

Disputes arising from an estate administration

We also assist clients with disputes and contentious matters relating to French succession.

Our experience includes disputes between heirs or beneficiaries, challenges relating to French wills and their interpretation or validity, forced heirship rules, disagreements concerning the valuation of estate assets, and disputes arising during the administration of French estates, as well as other succession-related legal issues that may arise in France

We advise you on your legal position under French law, help you assess the options available to you, and assist with negotiations aimed at achieving a practical and amicable resolution wherever possible. Where court proceedings or formal action are required, we work closely with French local lawyers, notaires and enforcement professionals.