PACs and Ineritance Rigts/Tax

[lyndros]

Hello,

I have three questions relating to French Inheritance

Rights and Tax.. They are very relevant to our modern times, as

fewer and fewer people are getting married.

All the questions

relate to a PACS couple who want to buy a French house together. They

are both resident in France, and both have adult children of previous

marraiges and these children are living away. The couple have no

property now in the UK.

(1) Will a tontine clause in the Acte de

Vente (in favour of the surviving Partner) disenfranchise the house from

the children of the first partner to die. And when the surving partner

afterwards dies, is it only the children of that surviving partner who

inherit the house, so that the children of the first partner to die

again get no share of the house.

(2) Instead of a tontine clause,

can the survivor be granted the right to live in the property after the

death of the first partner. If so, should  this clause be included in

the Acte de Vente, or should it be done seperatley by a Will. Also if

so, how and when do you actually value the share of the children of the

first partner to die- are they granted a reversionary interest to be

valued on the death of the second partner, and does that reversionary

interest take priority over the share of the children of the second

partner to die.

(3) There is an abatement relating to a principal

residence. Is this 20% or 30% for PACS couples. As PACS couples are

exempt from french inheritance tax anyway, in what circumstances can

this abatement be relevant. Can a child of the deceased take advantage

of this abatement, even though not living in the house.

Has anyone got any answers?

Regards

Lyndros

[idun]

They need to see at least a couple of notaires to discuss all this.

Maybe I lived in France too long, but I like the idea that the kids get their share eventually. It feels right to me.

 

[NormanH]

As idun says I reckon that this is beyond the competence of most of us (unpaid but well-wishing) volunteers. It needs a professional. If is asked as part of the process of buying the Notaire will answer, and it need not be an expensive thing to find out. Notairs are not like English solicitors who suck blood just for shaking your hand.

Personally I would rent together, and keep  each person's savings in a separate bank account, but then I am someone who thinks that the difference between herpes and true love is the herpes is for ever!

[idun]

I agree that they are quite different NH, but ours cost us a bloody fortune when we sold the house, long story.

Notaires, well, I have not much good to say about any I have used, and yet one must use them, and some know the ropes better than others, hence I suggested asking more than one. Others are IMO just glorfied tax inspectors and they don't always get that right.