1. Overview - Inheritance Laws and Taxation in France

There are few subjects that provoke more discussion and confusion amongst owners of French property than that of the inheritance laws of the country.

These laws are complex and can sometimes cause difficulties because of their rigid nature and the taxation liabilities that can arise.

Whereas in many countries inheritance laws strongly favour the surviving spouse, France grants specific and entrenched rights of inheritance to the children.

There is a strong historical tradition to this approach, based on a desire to protect the interests of the family.

Hitherto, one of the biggest problems has been the limited recognition of the place of the surviving spouse in French inheritance law, and this has caused a great deal of anxiety to many buying from abroad.

In recent years there have been significant improvements in the law, to the extent that the average married couple from abroad should have few concerns about the inheritance rights of their spouse.

The situation is even better in relation to inheritance tax for, there is no longer any liability for inheritance tax between and man a wife, or those in a French civil partnership. There are also generous tax allowances for children.

Even if you may be potentially liable to inheritance tax, there are numerous methods that can be used to protect your surviving spouse, retain control of your property, and transmit family wealth to your children.

Particularly if you are not married, or you are married with children from a previous relationship, it is important to give thought to inheritance planning, in order to secure greater control over your estate, plan an orderly inheritance, and reduce the potential inheritance tax liability of inheritors.

Tax considerations apart, France is plagued by disputes between inheritors, which often drag on for years, so some steps to avoid acrimony and deadlock would be well-advised.

It is a point often overlooked by international advisors, whose main expertise and interest, not surprisingly, is on taxation issues.

Our review of inheritance laws is divided into three main sections:

1. i. Inheritance Laws
2. ii. Inheritance Taxes
3. iii. Inheritance Planning

Of necessity, this can only be a review of the main rules of inheritance law and taxation. Every case is particular, and family matters are rarely determined by a mere consideration of the legal or fiscal circumstances.

We do not believe you need to spend a fortune to get good advice, and the notes in these pages should stand you in reasonable stead for many questions.

Nevertheless, make sure you do take advice, at least from a good French notaire, whose professional 'meat and gravy' is inheritance matters.

Not all notaires are competent to deal with international buyers, and if you consider your circumstances are complicated, or you are not confident of the advice being given by the notaire, then discuss your circumstances with international legal or financial advisors.