French Succession Law

French succession law is probably one of the most contentious rules for people moving to France, as it seemingly infringes on our civil liberty to leave our money to whomsoever we please.

Of course, every situation is different, and the rules in this area are complex, particularly once cross-border considerations come into play. We would always recommend speaking with a qualified adviser before taking any action.

What is succession law in France, and who does it apply to?

The history of French succession law can be traced back to the Napoleonic times. The goal is for the family to be protected and for the parents’ estate to filter down to their children. Children are deemed “reserved heirs” and so must inherit a certain fraction of their parents’ estate on their death. This law is woven into the French constitution; thus, these rules are significant and can be difficult to circumvent, though there are ways to do so.

Succession law is especially problematic for those with children from a former marriage, with the stepparent being left to battle with their stepchildren to hold onto the house and home.

The amount of the estate to be left to the children is as follows:

• 1 child = one-half of the estate
• 2 children = two-thirds of the estate
• 3 or more children = three-quarters of the estate

Obviously, the remaining fraction is unreserved and may be left to whomever the donor pleases.

To be clear, it is only that part of the deceased’s estate. Thus, if the deceased owned half the property and there was one child, it would be half of the half, therefore only a quarter. This clearly means that, in many cases, it does not give the child control of the property, but it is their right to demand their share on any sale.

Does French succession law apply to foreign nationals living in France?

This is where things often catch people out. If you are habitually resident in France at the time of your death, French succession law will generally apply to your worldwide estate, not just your French assets.

This means that a will written, for example, in the UK, which distributes an estate according to UK rules, may not protect the chosen beneficiaries as intended. The French rules take precedence, and the reserved heirship provisions apply regardless.

It is also worth noting that French succession law is separate from French inheritance tax. Planning effectively for one does not automatically resolve the other. Both need to be considered.

How does your marriage contract affect succession in France?

For married couples, the marriage regime, or marriage contract, that applies to you has a significant bearing on how your estate is structured and ultimately distributed.

For example, most British couples who were married in the UK and subsequently move to France are treated as married under the Séparation des Biens regime, which means assets are considered separately owned rather than jointly. This can have implications that differ considerably from what most couples assume, particularly when it comes to protecting a surviving spouse.

The interaction between marriage regimes and succession law in France warrants careful attention. For a more detailed overview, see our article on how French marriage contracts affect inheritance.

What is Brussels IV, and does it apply to UK nationals?

EU Succession Regulation 650/2012, commonly referred to as “Brussels IV”, allows foreign nationals living in an EU member state to elect that the succession law of their own country of nationality applies to their estate. In theory, this means UK nationals in France can apply for UK succession law to govern how their assets are distributed, rather than French law.

However, the position is more complex than it may appear, and it has no bearing on French inheritance tax liability, which remains a separate issue. For a full overview of what Brussels IV means in practice for UK nationals in France, see our dedicated article on Brussels IV and French succession law.

Can someone choose where their money goes?

For those who want the freedom to choose where their money goes, there are solutions. However, there will be some planning involved, ideally before buying any property in France, but it is never too late to act.

It is usually possible to leave the surviving partner the right of use or usufruit of a property. The usufruitier can live in the property and make any alterations they wish. They may even rent out the property; however, on the sale of the property, the children will generally have the right to their share.

This is probably the one area where we find misinformation to be dangerous. It is common for people to copy each other’s solutions, but this can cause serious problems because there is no single solution for every situation. Fixing such errors can be time-consuming and expensive. If a spouse dies with poor planning in place, this can mean months or even years of legal wrangling for the survivor and the family.

The second worst action you can take is inaction. The only safety net for those who do nothing is the “right of living and right of use.” This literally means you have the right to use the property, but no right to do anything to it, or even rent it out, without the children’s agreement.

Avoiding succession law issues in France

It is possible to reduce or even eliminate succession and inheritance law issues in many cases. This can be achieved using legal or investment techniques, or indeed a combination of the two.

It is worth noting that European legislation does provide UK nationals with a mechanism to opt out of

What are the main succession planning options available?

There are several routes that people in France commonly consider when it comes to succession planning, and the right approach will depend entirely on individual circumstances. Broadly speaking, these include the use of a French will, changes to a marriage regime, lifetime gifting strategies, and investment structures such as assurance vie, which sits outside the estate for succession purposes.

This is not an area where one solution fits every situation, so what works well for one family may be entirely inappropriate for another. For a fuller overview of the planning options available to UK expats in France, see our article on succession planning in France.

Seeking professional advice about French succession and inheritance law

The fact that this is such a complicated area, made worse by the international angle, makes it imperative to get professional advice before taking any action. At Kentingtons, we can use our expertise and knowledge about the law of succession to help you avoid making any mistakes in relation to the laws of succession in France.

We have been advising people on cross-border financial and succession planning since 2007, and we understand that no two situations are the same. If you would like to explore your position, we would be happy to talk.