Leaving money to a disabled person in France

I have read you can leave up to €159,000 to a registered disabled person whatever their relationship to the deceased and this will be tax free. Do you know if this would apply to an autistic grandchild resident in the UK? She does receive some kind of disability benefit in her own right plus 1-1 assistance in school. Does France include neuro-developmental conditions in its definition of ‘disabled’ and what type of documentation would be needed? C.N.

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A ‘disabled beneficiary’ is entitled to an exemption of €159,325 from inheritance tax.

The qualification requirements under Article 779 II of the French Tax Code (Code Général Des Impôts) are that the beneficiary must be either:

Unable to pursue work under ordinary working conditions due to physical or mental disability; Or, if under 18, unable to obtain a qualification or apprenticeship of a normal level (due to their physical or mental disability).

This requires supporting statements from medical experts (eg a GP) and from the social worker to confirm the disability and the resulting inability to work.

The French tax office will then need to approve this when the inheritance tax form (déclaration de succession) is submitted.

Whether or not a person meets those conditions is case specific.

This exemption is for any beneficiary who meets the above conditions, irrespective of whether they are a bloodline relation or not, and irrespective as to whether they are French resident or not, as long as the estate (or part of it) is taxable in France.

The exemption applies to inheritance or lifetime gifts and can be added to other existing exemptions.

So, a child entitled to the normal €100,000 free of inheritance tax would, if disabled, be entitled to €100,000 plus €159,325 (€259,325 tax free).

A grandchild is entitled to only €1,594 tax free and then tax on a sliding scale from 5% to 45%.

Question answered by Barbara Heslop of Heslop & Platt answers a reader query

Tel: +44 (0)113 393 1930 - www.heslop-platt.co.uk contact@heslop-platt.co.uk

If you have a query on this topic send it to news@connexionfrance.com

tax exemption succession law practical inheritance tax disability

tax exemption succession law inheritance tax disability