French inheritance laws

[Moo]

Hi all,

What happens if ..........a couple buy in France..... are not married........... he buys the house outright............ has one son from a previous marriage.............. and wants his long-term girlfriend to inherit the house if he drops down dead tomorrow??? ......;  As I understand, he can write a testiment declaring that she can remain in the house for as long as she wishes and when she dies or moves out the son will inherit. BUT she is also liable for 60% inheritence tax set on a sliding scale , and depending on her age, as to what she pays. How the hell can she cut this tax down? because at this rate if he keels over tomorrow she will have to take a loan out for 174.000€ to pay the tax before she gets her hands on the title deeds. Never mind the rate of interest on the loan.[8-)]

Thanks Moo

[Will]

There's no simple way of getting round French succession law, particularly if you reside in France (holiday home owners can buy with an SCI - which is a company - but that brings its own complications). To reduce the potential inheritance tax liability, unmarried partners should talk to a French lawyer about a PACS agreement.

[KathyC]

[quote user="Moo"]

Hi all,

What happens if ..........a couple buy in France..... are not married........... he buys the house outright............ has one son from a previous marriage.............. and wants his long-term girlfriend to inherit the house if he drops down dead tomorrow??? .....

[/quote]

In the circumstances you describe he could surely put the house in his girlfriend's name. Depends how trusting he is. They could of course get married, but there's the trust issue again.

Are you sure she would have to pay Inheritance Tax if the son inherits it. Surely he would be the one to pay the tax.(Although I assume he could then get her to leave.)