Do we need a French will? No assets in France

[chocolatefish]

Hello

We've lived in France for 8 years, 2 young children. While we do have some assets in the UK (rental properties, savings / investments) we have pretty much none in France - we rent, we live on one salary so virtually no savings. Other than bank accounts, and my DHs life insurance provided by his employer, we don't have any assets in France.

We do however have two young children. Do we need to have French wills ? Would this make things easier for them, or for whoever would be dealing with our estate on their behalf ( in the event of both our deaths while the children are still minors?)

Eventually we probably will become property owners in France, and at that point Yes, I see we'd definitely need French wills. But at this point in time, what would be the benefits?

Cheers for any advice.

[parsnips]

Hi,

  As french residents all your assets worldwide fall under french inheritance and tax laws.   If you die in France your succession will be dealt with by a french notaire (even if you have opted for UK law).

  You definitely need to make some arrangements for your successions, but not necessarily a Will as such.

 If you each wish your spouse to have control of all the family assets during their lifetime , you can have a notaire draw up "donations entre époux" , these are instruments that give the survivor several options of how to take the deceased's assets - all in life interest, 1/4 or 1/3 in full title with the rest in life interest, or just 1/4 in full title with the rest directly to the children.   The decision is made at the succession (priorities may change with age).  At the death of the life interest holder all the assets  pass to the children  without inheritance tax .

  You need to talk to a good english- fluent notaire. The cost of the donation is about 140€.  You could instead each make wills in the same , or similar terms .

If you want the surviving spouse to inherit all the family assets , you can now each make a french will opting for UK law , and simply leaving all your asses to your spouse , at whose death they will pass automatically to the children.  The only downside to this is that the children will only get one set of allowances against french inheritance tax on all assets. ( 100 000€ each.)

[chocolatefish]

Hi parsnips

As french residents all your assets worldwide fall under french inheritance and tax laws.

Re. the above, does this mean that if we both died tomorrow, our estate would have to pay inheritance tax on our UK assets to the French govt? And not to the UK govt? And which tax regime would be used to calculate the tax due?

Cheers

[parsnips]

[quote user="chocolatefish"]Hi parsnips

As french residents all your assets worldwide fall under french inheritance and tax laws.

Re. the above, does this mean that if we both died tomorrow, our estate would have to pay inheritance tax on our UK assets to the French govt? And not to the UK govt? And which tax regime would be used to calculate the tax due?

Cheers[/quote]

Hi,

     If you both died tomorrow , under french law your children would inherit in equal shares all your assets automatically , including  your UK real estate -unless you had specified otherwise in an english will.

     All your non-real estate assets would be subject to french inheritance tax, calculated under french tax rules ,and not UK IHT.  The exception is UK real estate which in the first instance is subject to UK IHT and then to french IHT , with credit given for any IHT paid in the UK.

    Your children would  each get 200 000€ tax free  (100 000€ for each parent)  and be taxed on the balance at a little under 20%.