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Inheritance tax - anyone with problems?

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  #1  
Old 09-11-2007, 03:38 PM
Janoulaki's Avatar
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Posts: 112
Default Inheritance tax - anyone with problems?

As I am sure you know, the Inheritance law is a somewhat complex one in France and needs to be
thought about carefully BEFORE you buy your property. Unlike in the UK, whatever your will may
say, it can be overturned by your "heritiers reservataires" (protected heirs). This is usually your
children: you cannot disinherit your children in France.

If you are married and have no children then your spouse is a protected heir. If you die without a will
the laws of intestacy state that your children or grandchildren receive all your assets. If there are no
children your assets pass to your spouse or other surviving blood relatives. There is no such thing as
probate in French law and the process is that property passes automatically to the heirs.
The rights for the surviving spouse have been improved over recent years and now that Sarkozy has
won the election, I hear talk of the inheritance laws being radically changed or even abolished!
In general it is a good idea to have 2 wills if you have assets in the UK and France. You should make
sure they don't overlap or contradict each other of course. A valid will can never override the rights
mentioned earlier of the protected heirs but can override the rights of other heirs, including a spouse,
if desired.
Do note that provisions in your UK will can be taken into account by the French authorities as long as
they are not in conflict with French law.

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Good luck

PS: any questions re France feel free to ask me
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  #2  
Old 23-06-2008, 11:33 AM
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If anyone has inheritance problems I would seriously suggest NOT posting them here. It really is quite complex and you should speak to a Notaire directly concerning your particular case. Answers to commonly asked questions:
* any UK will is invalid regarding your property in France
* if you wish to have English-style inheritance law, where property passes directly to the spouse instead of being divided amongst family immediately, then you need to register under an act called "communaute universelle" (searching for this on Google will give you more information). This must be done *before* you purchase and applies to all property you buy henceforward
* you cannot disinherit children from previous marriages, unless they voluntarily sign away their rights

Phillip.
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Old 22-08-2008, 08:16 PM
bhc bhc is offline
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If you buy the property as a company then you by pass this problem.
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  #4  
Old 24-08-2008, 03:54 PM
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If you buy the property as a company then you by pass this problem.

But risk bumping your capital gains tax up from 16% to 33%. I presume 'bhc' is referring to a special type of French company that is a shell non-trading company that is used for holding a property called a 'SCI'.

Phillip.
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