French Wills
French law compulsorily applies to the inheritance of your French property, and under French law there are compulsory reserves in favour of children. Nevertheless it is often, although certainly not always the case that a means can be found of getting out of the compulsory reserves if you do not want your children or any particular child to inherit. We advise on this on a case by case basis.
If you are a married couple with children, you may well need French Wills whereby each spouse leaves a life interest to the surviving spouse contemplating that Testator's spouse survives Testator, making it clear that after surviving spouse has died, the children take Testator's interest in the property. As a variation on a theme your French Will can leave one quarter absolutely to your surviving spouse, and three quarters in life interest to said spouse, with remainder in those three quarters to the children. The children are thus kept waiting until the surviving spouse has died. They cannot come in through the door without surviving spouse's consent.
We can provide the French Wills for you together with English translations and signing instructions.
For further information you can contact us.
French Inheritance Tax
Since August 2007, the burden of French inheritance tax has been lightened considerably. In particular, there is no longer any inheritance tax between husband and wife. However, for the time being at least, the punitive 60 % inheritance tax rate on gifts to non-blood beneficiaries remains in force. Note in particular that a disposition by Will to a step-child is a disposal to a stranger in blood that is hit with inheritance tax at 60 %. We advise on French inheritance tax generally.
French Gifts Tax
The rules on French gifts tax are largely similar to but in certain significant cases by no means the same as the rules on inheritance tax. We will also advise you on French gifts tax generally. Note that French gifts tax is chargeable between husband and wife.
Pacte Civil de Solidarité
This is called a PACS for short. It means a civil solidarity pact, which is roughly the same thing as a UK civil partnership. If you have a PACS, the French inheritance tax and French gifts tax situation is exactly the same as if you were married. You can only have a PACS if you are resident in France on a permanent basis. A UK civil partnership is not recognized in France.