French Inheritance Law
Inevitably when considering purchasing a property in France, it is sensible to plan how best to structure the arrangement to take into account your personal circumstances and the present and likely long term tax position.
French law dictates that certain heirs have automatic rights of inheritance, which must be respected, and a surviving spouse/partner does not automatically become the legal beneficiary of the property in France in the event of the death of the other spouse/partner.
There are ways to structure the property purchase to minimise the impact of inheritance laws, for instance - changing the marriage regime; inserting a tontine clause in the deed of sale ; lifetime gifts between spouses; PACS; French Wills or ownership via a company.
Also, with the reform of French inheritance laws which came in to force on 1st January 2007, many rules have changed and it is therefore doubly important to seek qualified advice. For example, the statutory reserve ensuring that parents could not be disinherited when the deceased leaves no children has been abolished.
Another major change is the lawfulness of agreements on future inheritance (which were prohibited in the past). In other words, the new reform allows heirs with a legal reserve (in particular children) to waive in advance their right to inherit in favour of a designated person, for instance the surviving spouse, a handicapped child, etc.
Other major changes are also forthcoming, for instance the abolition of death duties in certain cases.
We do not believe that you should rely on the notaire appointed by the seller to advise you on these important matters. It is in your best interest to consult someone who can take into account both the French and the UK legal systems and recommend what will best suit your needs - especially as the two legal systems are often in conflict. Because the Tee France team is composed of French Avocats and English Solicitors, as well as bilingual employees, we are fully qualified to provide you with the best advice. In addition, our Private Client Department can advise you on English inheritance laws and the effects of the recent changes.
