Inheritance Question

[redmike]

My mother owns a property in France. She was born in France but gave up her dual nationality a number of years ago and now lives in England as a British citizen.

As she is in her 80s and so is my father the subject of inheritance has arisen. She has not made a French will although I believe she has made one in England. She says that because of the inheritance laws which apply to the surviving spouse and children (I have one sister) she has been told there is no need to make a French will as the property will automatically be inherited by my father and then the children. She cannot 'bequeath' the house to any of us.

Is she correct?

For a number of years I have used the property and I pay all the bills and would like to start major building work on the property but would like the legal side clarified before investing a lot of money in it.

My mother regards the property as that of mine and my sister's now and rarely goes back.

 

 

 

[Val_2]

For your own peace of mind I would see a local french notaire when next at the property. It is a complex and difficult situation here with spouses and children and there are often taxes to pay at death depending on the value of the property etc. Nothing is automatic here and many families have years of ongoing non-decisions about inheritance at the end. You can get your parents to will the property to you now, our Parisien friend did just that a few years ago when his elderly parents stopped visiting their holiday home here and he inherited it without any problems.

[redmike]

Thanks Val. I am going to be at the property quite a bit from about August/September onwards so will take your advice and see a Notaire. My French is pretty good as my mother is French and I spent many holidays with my Grandparents (at this house!) and they spoke no English.

I love the property and see it as my retirement home eventually.

Ironically the more money we spend on the property now the more it increases in value and therefore the more we have to spend on inheritance tax.

 

 

[Loiseau]

The notaire may suggest that, if your mother is in agreement, she should make a gift of the house to you, or to you and your sister right now. 

I helped a friend of mine to do that a few years ago. There is the conveyancing cost to pay of course, just as with the purchase of any house in France, which might be about 10 per cent of the value, but the notaire could explain it all.

Angela

[redmike]

Thanks Loiseau - we will have to do our sums. Will it be better to pay 10% of the current value or pay the inheritance tax etc? I suppose as we are doing work on the property it would make sense for it to be ours now and pay the conveyancing now. Obviously the property will increase in value as we 'do it up' - well hopefully anyway!!!

I hadnt gone down this route as I didnt think it was allowed. Perhaps the law changed a while back.

In any case the Notaire seems to be the popular starting point. I have identified who he is and where he resides so will visit him when I am next out there.