-
Succession planning in France can highlight cultural differences
Partner article: Robert Kent of Kentingtons explains why some expatriates are surprised by the French approach to inheritance
-
Where do we pay house inheritance tax in France?
John Kitching, a director of French Law Consultancy Limited, answers a reader query
-
Key financial steps to take after the death of family member in France
Unlocking bank accounts, cancelling contracts, we look what you need to do in the months following the death
Can French home be gifted to just one child?
My father lives in France and wishes his property to go to myself. My brother and I live in England and we agree that he will inherit my mother’s estate. What do we do?
Barbara Heslop of Heslop and Platt, solicitors and French law specialists, replies:
It is possible for your father to gift his French property to you while you retain a life interest so he can continue to have the use and benefit of the property for the rest of his life.
You would receive the bare (legal) interest (nue-propriété) and on your father’s death his life interest will be extinguished and you will become the legal owner. Gift tax would be calculated on the value of the bare interest gifted to you and the age of your father at the date of the gift. The tax-free threshold for gifts to children is €100,000 per child.
If your father decided not to keep a life interest, the tax would be calculated on the property’s current value. The tax position would be no different if you paid a nominal price for the property as the tax would be charged on the property’s actual value.
A notaire is likely to insist on your brother signing a declaration confirming that on your father’s death he will not challenge the earlier gift to you. He would need to sign it in France in front of two notaires.
