Help ! Inheritance Rules for Unmarried Couples

[rockyracoon]

Hi,

My partner and I have purchased a house in France. We live and are tax resident in the UK. He has 4 children from a previous marriage, I have none. We were advised by a french based notaire that for me to inherit the property if he died before me, we could make a will leaving each other the property. We understood in doing this, that on the death of a partner, the survivor would be liable for 60% inheritance tax on 50% of the value of the property. We went through many other possible scenarios, but decided to take this option. It was the only option which would lawfully mean that I would retain control of the house if my partner died before me, even if that means I have to pay 60% tax. We have now made a will to this effect which resides with our notaire in France.

My question is - can my partners children still inherit, was the notaires advice correct ? 

Also - Are the French ever likely to change, revise or update their rules in the future - I know that's a difficult question to answer, but any thoughts ?

Any advice helpful  - Many Thanks.

[Sunday Driver]

Given that the notaire is the expert on matters concerning inheritance, I suspect his/her advice would have been correct.

The rules on inheritance were changed in 2004 to extend the inheritance rights of the spouse.  There has also been recent changes to allow siblings to renounce their inheritance rights in favour of disadvantaged (eg, handicapped) brother/sisters.  Indeed, the incoming President has expressed the desire to allow people to pass on the fruits of their working life to their children without handing a big part of it over to the state, so who knows what further changes will arise in the future. 

 

[SC]

[quote user="Sunday Driver"]

Given that the notaire is the expert on matters concerning inheritance, I suspect his/her advice would have been correct.

[/quote]

I agree with SD, but I think that the notaire has prepared something more than an ordinary will, because I'm fairly sure that a will can't change rights of succession under which the survivor of 'une union libre' comes some way down the list. Possibly a donation/partage that takes effect on the first death, which is why the tax is so high with no mention of allowances, or a 'legs résiduel' although I'm not sure if these can be applied in the case of concubin(e)s.

Under an interesting change to succession law from 1st January 2007, people can ask other family members to sign a legally binding Pacte de Famille to ensure that their oral promises not to cause trouble after their death are set in stone and are binding.

Steve