Stepchildren: French MPs approve higher inheritance tax allowance

Stepchildren in France should soon be able to inherit up to €15,932 before paying inheritance tax, in a new law adopted by MPs this week.

The Assemblée nationale adopted an amendment to the 2026 budget’s projet de loi de finances (PLF) on November 3. 

It states that:

• Children of the surviving spouse or partner in a marriage or Pacs partnership can inherit a legacy left to them by their late step-parent to the new upper limit, tax-free.

• The pre-tax allowance is set at €15,932, the same as currently applicable to the deceased's siblings.

To qualify for the new higher limit, step-children must comply with several conditions:

• The deceased person must have provided the children of their spouse or civil partner with “uninterrupted support and care as their primary caregiver since the marriage or civil partnership with one of their parents”.

• This must have been the case until the death or for at least for five years if the child was a minor at the time of death.

• If the step-child was an adult at the time of death, the deceased must have provided for them for at least five years while they were a minor, or otherwise for 10 years in total.

The new amount is a higher limit than the previous pre-tax allowance of €1,594, which is the amount allowed for inheritance left to people who are not related by blood to the deceased.

However, the limit is still much lower than the €100,000 tax-free amount allowed for offspring who have been fully adopted, or who are the deceased’s biological children.

The amendment seeks to “better reflect changes in family structures by introducing a specific allowance for transfers made by a deceased person to the children of their spouse or civil partner”, the bill states. 

The new amendment comes after President Macron pledged in 2022 to improve inheritance rules for family members of married or Pacsed partners. However, it falls far short of his proposal that the level for step-children should be raised to €100,000 and for biological children to €150,000.

The new amendment has not yet come into force; it will still need to obtain approval from the Senate and be voted through with the rest of the PLF before 2026.

Succession law for children in France

The change is a significant move on the part of MPs, and brings succession law for step-children somewhat closer to the rules for related-by-blood offspring, at least by acknowledging, for the first time, the step-parenthood relationship.

French succession rules are strict, and prioritise the inheritance rights of related children. Children have a protected right to inherit from their parents, in contrast to more flexible systems in countries such as the UK, where individuals are free to leave their estate to whomever they wish.

There are, however, options for non-French nationals. Since 2015, an EU regulation allows individuals to opt for their home country’s law to govern the distribution of their estate, including French property, as long as this is clearly stated in a will.

If this choice is not made, the law of the place of residence at the time of death applies.

A 2021 French law has complicated matters by asserting that French children are entitled to demand a portion of the estate regardless of the law chosen and their deceased parent’s expressed wishes. 

This French law, widely seen as clashing with EU rules, is under review by the European Commission, with reports having made suggestions to France as to how the “problem” may be rectified. However, for now, the controversial system still stands.

Anyone planning to pass on or expecting to inherit property or assets in France can seek expert advice from a legal professional such as a notaire.

See the formalities around French succession rules, what to do after a death, considerations for buying property, and more. Our Inheritance Law and Wills in France helpguide can be purchased here.