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Effect of new inheritance laws august 2015

Posted by sandpiper - Created: 3 years ago
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7 replies (Showing replies: 1 to 7)

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Posted by Kanak - 3 years ago

janes and brodeuse are right... it may sound bizarre but here the 'legal reserves' system makes it obligatory to leave defined proportions of your estate to your children, and any new legislation allowing you to leave your estate to whomever you wish, like step-children, will not exonerate them from paying the appropriate level of property tax in France.  There was a question on here recently about leaving a sum to charity, advantageous from a tax point of view while you are alive, but cripplingly inefficient when you are dead.

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Posted by brodeuse - 3 years ago

As I understand it the will should be drawn up in France stating the testator wishes the UK rules of succession to apply to the estate. The inheritance tax payable will be under the French regulations.

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Posted by Heligan - 3 years ago

I am totally befuddled reading this thread! I have just looked at the French Entree link to the Stone King video who explain what is happening from August this year. Looks like Brits living abroad will need to make new Wills with very specific wording, in order to  to be able to leave their property whereever situated to whomever they want. Up til now property held in France had to be dealt with under French Inheritence laws, hence the reason Brits buying here brought "Tontine" or entered into a Marriage contract in order to protect their spouse. If the  new Will is worded correctly then presumably these arrangements shouldn't be necessary in future. What I am not clear about is iwhether the Will has to be drawn up in France or whether an English lawyer could do it. (England dropped out of the Regulations) I am also not clear about in which country any tax will be paid, as this law is not about tax.

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Posted by brodeuse - 3 years ago

It is the law of succession which is changing in August not the inheritance tax laws.

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Posted by janes-394036 - 3 years ago

There is no change to inheritance tax. What you've just described is how it is now.

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Posted by Pushkin-986745 - 3 years ago

And as yet,having looked on the agenda its not been schedualed for its first reading yet ! Long way to go still .. And be assured the French will still want their pound of flesh whatever happens ..

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Posted by Pushkin-986745 - 3 years ago

What people have to take into account is that this inheritance law change is still within an EU study group and not yet been published or voted on .. Until its voted on and the final draught is published if passed , nobody knows its pure speculation ..