e-mail: martin@siddalls.com.fr. Each case is specific. In their wills, which have a British law election, they leave all their worldwide assets to each other on the first death, and equally to the four children on the second death. She owns a chalet in the French Alps. Which means once you are resident in France andyou live a frugal and egalitarian life here,your actual net worth on expiration might well bewithin the less than generousallowances permitted. It should be noted: the rules set out above are only valid in the absence of a will, which is made by the deceased person. You may (for example) be able to adopt your own child- however silly that may sound - in France. Given the number of people moving to France and a big percentage of them in second marriages with stepchildren. If you are a resident of or have assets in France, be sure to express your final wishes in a document. An inventory of the furniture and status of the building, can then be drawn up to avoid potential disputes. This is only my view, I would expect that if you are resident in France then that inheritance would have to be declared as "income" and you would be taxed on it. The surviving spouse inherits everything, with the exception, however, of the property that the deceased had received through donation or inheritance from his ascendants (parents or grandparents) and which is still part of the inheritance. Anne, Hi to Ian. Is this likely to cause even more headaches? We are still hopeful of living in France and simply ask that anyonewho has haddealings with this law, and been given any satisfactory advise pass it on. In England and Wales testamentary freedom exists, meaning that broadly speaking you can leave your assets to whomever you wish when you die. There is some good written information on this that most Notaires have in their possession. 188.165.239.102 This law allows people to elect for the law of their nationality to apply to their will in France. With two children, they receive 66.6% of the estate between them. Make sure you've protected yourself and your assets against every eventuality with our guide to planning wills and estates in France. Through mutual agreement, the surviving spouse and the other heirs can convert this right into a life annuity or into a capital. This is not what the couple wished, as Beths child will receive substantially less than Barrys child after tax. On a slightly different way of looking at the problem, does anyone have views on buying the property in our daughters name.? The differences between usufruct and full ownership are important, but once again there is no right or wrong solutions. We have been here since April and really love it but have been given some real duff advice by some well meaning people l'm sure! This was then challenged in August, but the relevant section was not changed and the law is therefore due to come into force on 1st November 2021. English and Welsh law does not contain a mechanism that reserves part of a persons estate for their children. Because Claires biological child is habitually resident in the EU, she will be able to make a claim under Article 913 because she is not receiving the share of Claires estate as set out under the French forced heirship rules. Performance & security by Cloudflare. Their answer was the same. In exceptional cases, if the accommodation is no longer suited to their needs, the surviving spouse can rent it for use other than commercial or agricultural purposes, in order to provide the resources required for another accommodation solution (retirement home for example). I don't think it's quite as bad as you think, Anne, depending on your marriage terms, it is most likely that you will be assumed to be the owner of half your total assets. However, any challenge and its outcome could take several years to be concluded. For the past 2 weeks or more since I have really started to look into it, life has revolved around, wills, inheritance, who might go first, etc, etc. Perhaps you would like to read the article I have been reading, others may interpret it differently.It talks of all the different ways of doing things including "Tontine" none of them over -ride the fact that the person is a step child. French laws are very complicated and I am in the same boat as you virtually. With regard to inheritance from a parent living in England. I will say "thanks" but "No Thanks". www.frencentre.com/fe-legal Once on the site scroll down left hand side to heading "documents on French property tax and law in France" under this in red click on "French Inheritance and tax planning" pages 1-13 deal with all aspects. There would always be the concern, that although we think we have been welladvised, maybe not. Anything they inherit over this amount will be taxed on a sliding scale between 5% and 45%. Our property was purchased with the "tontine" clause. If the surviving spouse is a tenant of this accommodation, the rents are payable through inheritance, i.e. By contrast, if you own property in France, but neither you nor your children live in the EU, this change to French law will not apply to you. Anything over that tax free allowance (subject to exemptions and allowances) is taxed at the flat rate of 40%. For an overview of the legal aspects see this INFOrmation Page: I'd say you need to seek the advice of a French tax lawyer (or an English-based solicitor that works very closely with a French tax lawyer). Our specialist French Legal Services team has already helped many people to make their move to France or back and ensured they have all their affairs in order and no potentially nasty financial surprises round the corner. You can contact our teams using our online enquiry form or by calling 0330 404 0736. For example, if I die first (I am the natural mother), then on my husbands death our daughter will be taxed at a flat 60% on all that she inherits and this includes our world wide assets. So, if the above criteria apply, and you have made a will covering your French assets which doesnt leave your children a gift equal to the amount that they can inherit under the French forced heirship rules, following your death your children can request that the notaire makes an adjustment to the amount that they receive. French Inheritance Laws - Rights of the Surviving Spouse. There is also,the important point that you have choices before you arrive in France. Payment periods may be granted to him if, during the partition, he owes a sum of money (balance) to the other heirs. At the end of July 2021, a bill was passed in France making changes to Article 913 of the Civil Code. In the UK, each individuals estate has an inheritance tax free allowance on death, which is currently 325,000. When I read that the lawyers in some cases can not agree on a point of law, or say it is "open to interpretaion".well! You can still make a will electing for English law to apply to the succession of your estate and your children will not be able to claim compensation using Article 913. Our Notaire was impressed with the scheme and amazed at my trust.I'm not looking for an old camper van yet. We spoke to the Notaire about the possibility of adopting each others children which, I believe can be done therefore making the step kids in effect 'bloodline'. Sorry, this is a bit of a morbid subject, but it would be very helpful to get advice from anyone in a similar situation. Thanking anyone that takes the time to reply. Regards.35. Historically, the surviving spouse has had something of a raw deal in French inheritance law. As many families these days, we are a second marriage couple with a step-child involved. Which was why I suggested your husband may be able to adopt his step-daughter in France, as the regulations may be different. If so, perhaps she should be offered legal advice so as to know that all three children would inherit equally but it would be left up to her to make that arrangement if she continues living in France. If you buy with a tontine as suggested this won't help if you should die first, the property would go in its entirety to your husband. Talk to a Notaire about the Tontine de Dernier Vivant.This gives the surviving spouse control over the property during his/her lifetime. Balance taxed between 5% 45%. They moved to Annecy in France eight years ago following their retirement. They live in the Dordogne. A step-child is classed as an unrelated beneficiary. However my concern is what happens to our daughters inheritance after we have both died, in the event that my husband dies last. The surviving spouse inherits everything, however with the exception of the property that the deceased had received through donation or inheritance from his ascendants (parents or grandparents) and which is still part of the inheritance. Thank you for the replies to my question. Suggest you contact financial expert at Siddalls. Claire is a British national living in Bath. Bea and Barry have made wills, with a British law election, in which they leave their home to each other on the first death, and then to their younger son. They each have 2 children from previous marriages. Hi. Anne. Hi Skippy, Not sure if this is too late for you and l can see that you have had a lot of 'advice' but we have just got back from seeing our Notaire regarding the same problem as you ie. Balance taxed at a flat rate of 60%. That is until I read the laws attached to Inheritance by step-children. If he dies, it goes to your daughter and if he sells it ,your daughter has first call on the money. "A stepchild is subject to a flat 60% tax on all inheritance"I just cannot believe that there is not some way around this. Over a 12-part series of articles Charlotte will cover topics such as how to buy your property as a couple (jointly or not), the different legal implications for a married couple and a civil partnership, and what happens to the property on your death, including who it will pass to and what succession tax consequences there might be. Like most of us living here,the inheritance laws are a mystery and a minefield.We are amazed that the French haven't brought things up to date.We know of several French couples who daren't re-marry because of all the problems. Please, if some of you have dealt with this law and can advise us what to do we would be extremely grateful. But this does not mean that the surviving spouse shall always inherit everything. Moreover, unless the deceased wishes otherwise expressed through a notarial will, the surviving spouse has, until his death, a right of residence in the accommodation occupied as the main residence depending on the inheritance but also a right of use on the furniture. Because both Amy and Andrew, and all their children live in the UK and are British, the changes to Article 913 do not apply to them. However, the survivings spouses agreement shall be required to convert the usufruct relating to his main residence but also the furniture in the accommodation. But this does not mean that the surviving spouse shall always inherit everything. If Beth dies before Barry and leaves all her assets to him, he will inherit them free of inheritance tax, because they are married. All the children are British and live in the UK, except for Claires biological child who is living in Portugal. Dealt with this law allows people to elect for the law of their nationality to apply to their will France. 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