France Inheritance Laws [Legal Guide] 2023

The legal guidelines that control the transfer of possessions, properties, and other types of wealth from one generation to the next, following the owner’s passing are known as inheritance laws. These laws set down the duties and rights of heirs and beneficiaries as well as the methods for dividing the estate of the decedent.

Over the years, particularly in the last half of the previous decade, French inheritance laws have went through significant alterations. So it’s natural for this topic to create confusion among the general population not well versed in legal matters. In this article we try our best to cover every aspect of French law regarding inheritance so you don’t have to drive yourself nuts over it. So let’s dig in.

France Inheritance Laws

The Civil Code, which specifies the rules and procedures for the transfer of assets and possessions after a person passes away, governs inheritance laws in France. For example, the law states that in the case of one child 50% of the estate owned by the deceased is transferred to the heir.

In the case of two or three and more children, 66% and 75% of the estate owned by the deceased is transferred to the heir respectively. However, people in France are free to divide a specific amount of their estate anyway they see fit.

French Succession Law

According to French law, children inherit 50% to 75% of the estate as they’re the legally protected heirs. The guidelines and procedures for dividing a decedent’s estate are set down in the French Civil Code. The rules that control the transfer of assets and properties after the death of a person who owns property in France are referred to as French succession law.

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French Property Law

According to French law, 6% to 8% of the purchasing price of the property is deducted by the government. All real estate transactions in France must be published in a public register known as the “Land Registry”. Furthermore, all property details in France, including ownership, boundaries, and characteristics, are recorded in the Land Registry.

Inheritance Tax In France

Inheritance tax in France can range between 0% to 60%. The rate greatly depends upon the relationship between the deceased and the heir.

In France, the succession tax is another name for the inheritance tax. It is a tax on the distribution of assets and property to heirs after a person has died. The tax is calculated based on the value of the transferred assets and the relationship between the heirs and the deceased. According to the asset value, there are many tax brackets, and there are various tax rates for transfers to various kinds of heirs.

According to the French law, the inheritance tax is subjective depending upon the heir.
inheritance tax rates and allowances. The heirs or beneficiaries of an estate must pay inheritance tax in France. The deceased’s relationship to the heir or beneficiary affects the inheritance tax rates and deductions in France. The standard tax rate is set at 40%.

Inheritance Law On Pensions In France

In France, the type of pension and the relationship between the deceased and their heirs determine the inheritance law’s applicability to pensions. For instance, to put it simply, there are two kinds of pensions – state pensions, and private pensions.

For state pensions, such as the French social security system, the surviving spouse or partner may be entitled to a survivor’s pension. For private pensions, such as company pensions or individual retirement accounts (IRAs), the rules can be more complex.

Similarly, if the inheritance is received as a lump-sum payment, no taxes need to be paid. However, in cases where the inheritance is received as income such as rental income, taxes must be paid.

French Inheritance Law No Will

Under French inheritance law, in case of no will the deceased’s estate will be divided among their heirs according to a set order of priority. However, if there are no living relatives then the estate will be transferred to the French State. In France, if a person dies without a will, their estate will be subject to the rules of “succession,” which are set out in the French Civil Code.

French Inheritance Law Spouse

Under French inheritance law, a spouse or partner is not automatically entitled to inherit from their deceased spouse or partner’s estate if there are children or other heirs. Yet, in some situations, a surviving spouse, husband, or a wife may be qualified to receive a portion of the deceased’s assets. If there are no children or other heirs, the surviving spouse is entitled to all of the estate.

How To Avoid French Inheritance Tax

Taking advantage of exemptions and deductions, setting up a trust or considering insurance etc. are some of the most common legal methods one can opt for to avoid French inheritance Tax. Although avoiding French inheritance tax completely may not be possible, but such legal strategies can help reduce the amount of tax owed.

French Property Law On Death

In France, when someone dies, their property is typically distributed according to the country’s inheritance laws. These laws are designed to ensure that certain family members receive a portion of the deceased person’s estate, known as their “reserved portion.”

How Much Money Can You Gift To a Family Member Tax Free In France?

As of 2023, the annual tax-free gift limit in France is €100,000 per donor per recipient. This means that a donor can give up to €100,000 to a recipient without any tax consequences. However, if the gift exceeds this limit, the excess amount will be subject to a flat tax rate of 60%.

Does English Inheritance Law Apply In France?

In general, English inheritance law does not apply in France. French inheritance law applies to all property located in France, regardless of the nationality of the owner, though there are different inheritance laws for non-residents.

For example, under French law, there are strict rules governing inheritance that cannot be overridden by a will. These rules dictate how property is to be divided among heirs, and they may differ significantly from the rules under English law.

Is An English Will Valid Under French Law?

An English will may be valid under French law, but there are some important factors to consider. French law applies to all property located in France, regardless of the nationality of the owner. This means that if you are a UK national who owns property in France, you will need to ensure that your will is recognized under French law to ensure that your wishes are carried out.

To ensure that your English will is recognized under French law, it’s recommended that you work with a legal professional who is knowledgeable about both English and French inheritance law.

Inheritance Rights of Children France

Under French law, children have certain inheritance rights. The rules governing inheritance in France are based on the concept of “forced heirship,” which means that certain family members have a legal right to a portion of the deceased’s estate.

What Is The 7 Year Inheritance Rule?

The 7-year inheritance rule in France is a tax rule that applies to gifts made by the deceased person in the seven years before their death. Essentially, this rule is designed to prevent people from avoiding inheritance tax by giving away their assets shortly before they die.

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Who Will Be Excluded From Inheritance?

In France, there are certain situations in which a person may be excluded from inheriting from a deceased person’s estate. These situations may include predeceasing or renunciation.

Can You Disinherit Your Children In France?

Under French law, children are considered legal heirs and are entitled to a portion of their parent’s estate. This means that a parent cannot completely disinherit their children and leave them with nothing.

How Do I Protect My Child From Inheritance Tax?

The transfer of assets from one person to another following the death of the asset’s owner is subject to inheritance tax. In order to protect your child from inheritance tax, there are several strategies you can consider. For instance, making a donation etc.

How Much Can a Child Inherit Tax Free?

For children, the tax-free allowance is calculated based on a portion of the estate called the disposable share. The disposable share is the portion of the estate that can be freely distributed by the deceased, that must go to legal heirs (such as children).

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JD Lipton

JD Lipton is an accomplished legal writer who specializes in civil law. He's a prolific legal practitioner & publisher who's been part of the community for four decades, writing on numerous legal & social topics to educate the common citizen about their rights.