Partner article: Is there a way to ensure civil partner inherits French property?
UK residents with a home in France may face steep taxes on succession
A registered civil partnership or Pacs allows you to leave your estate tax-free to your partner
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Reader Question: I have a property in France (bought in May 2016) in my name. My long-term partner and I are finally having a civil partnership ceremony next month. How can I make sure the property is left to him?
It sounds as though you are UK-resident with a French holiday home. If you were to leave your estate to your partner without being married, or registered civil partners or Pacs partners, then France would charge 60% inheritance tax on the French property (less a tax-free allowance of €1,594). If you were French-resident, then that 60% rate would apply to your worldwide estate, including UK ones.
Getting a registered civil partnership (or Pacs or marriage) allows you to leave your estate tax-free to your partner. However, as a Pacs partner or registered civil partner, they will not automatically inherit from you.
If you want them to inherit anything, you need a valid will in place (or other mechanism to transfer assets into their name).
Read more: Is a new will required in France after getting married in the UK?
It is possible for a UK will to deal with the global estate, although it can often be easier and in the end cheaper to have a UK will for the estate outside of France and a separate will for France.
You should seek specialist professional advice for your particular circumstances, bearing in mind any rights of children or stepchildren, and the tax implications, if relevant. Cost will depend on the particular adviser that you engage.
Warning: if you have a current UK will, it will be revoked by marriage or registered civil partnership (unless it states otherwise in the will) under the law of England and Wales. French law, conversely, does not revoke a will by marriage (nor by Pacs).
Read more: French acronym explainer: What is a Pacs?
A lifetime gift of part of the property to your married/registered civil partner is also possible (the percentage depends on rights of children), but only the first €80,724 is tax-free. Notaire fees of somewhere around 5% to 7% would also apply.
You are taking the right steps, avoiding 60% tax, but you do need carefully thought-out specialist advice tailored to your own particular situation. Enjoy the big day!
John Kitching is a director of French Law Consultancy Limited
