Intestacy & other inheritance problems

[bougiecat]

[8-)]My husband and I own a house in France via an SCI. This was advised by both our notaire and our English lawyer when we bought our house as we were buying with my daughter's family. Sadly things did not work out and we have now purchased her share of the SCI. My friend is now considering buying in to our SCI as the house is too big for us to manage on our own (we are both retired and my husband is in poor health) and she loves France as much as we do! My husband and I have two children each by previous marriages (none from this marriage) and my friend has a young daughter.

We need to know what will happen to his share of the SCI if my husband dies intestate;

What position will my friend and I be in in relation to inheritance tax (if any);

What taxes will we be liable for?

Are we, as we have been led to believe, allowed to dispose of our shares in whatever way we like; if so, can my husband make a will leaving his share to me?

Are we able to stay here or can my husband's children claim his share?;

Bougiecat

[Cassis]

Hello cat-like candle thing

You may find the answers to your questions if you search for inheritance on the forums (see the little box in the top right of the page).  This recent discussion may help you:

http://www.completefrance.com/cs/forums/687721/ShowPost.aspx

Phil

[Phil the Francophile]

Ouch! Can I assume you are actually living in the house and as such a domiciled in France? If so then standard inheritance laws, and taxes apply, as the shares (parts d'interet) in the SCI are assets. As there are children from a previous marriage in theory they would inherit at least a proportion of the shares as I understand it. As with any assets you cannot make a will that is designed to disinherit the children, if you do it will be ignored.

If you are living in England, and using it as a holiday home then you should be subject to English Common Law as far as inheritance is concerned and your English Wills would apply, as would English Inheritance taxes, if they applied.

It is possible to to insert a tontine clause in the SCI Statuts but you really would need to take advice on that. Indeed you ought to try to get proper advice on the best way to deal with the situation. My thoughts above are what I have learned, but opinions do vary.

 

[Cassis]

I thought you might spot this one, Phil!  I regard you as our resident expert on these matters after your experience!

Phil (the other Phil)

[hastobe]

This may help: http://www.riddellcroft.com/French/UKTaxTreatmentsforSCI.htm

Note: I'm note sure how old this article is as some of the statutory references are quite old.

Kathie