French Property Law
Promesse de vente (French Property Sale contract)
French Inheritance Law for French Property
The French inheritance law differs greatly from both American and English Inheritance laws. The French rationale is to provide laws to protect the family assets in the inheritance. Children can therefore impose rights in a French inheritance. For non resident French inheritance law applies to any French real property as it is considered an immoveable asset. For residents in France, French inheritance laws will apply to all assets.
French Inheritance Law
For non-French residents, real estate situated in France will be subject toFrench Inheritance Law . This is not the case for "moveable" assets, which are governed by the inheritance law of the country of the deceased's domicile on the date of death. French inheritance law imposes "forced-heirship" rules: it is impossible to disinherit certain categories of beneficiaries (children, parents, etc), even by will. Such beneficiaries may challenge a will to claim a fixed proportion of the inheritance. In such a case the Civil Law would take precedence over the will.
As a point of interest, the Hague Convention of 20 October 1988 permits the person writing his will to state which law he should like to govern his entire succession. This part of the convention has yet to be ratified, so the selection of Inheritance Law can not currently be made by simple election in a will. However, the convention hints at simplifying international inheritance law and it is advisable, even at this stage, to include such a clause in the will should the convention be subsequently ratified.
If a will is appropriate, idealy it should be in both English and French for the avoidance of any doubt. The will should be registered on the Notaire’s central office in France – the first point of reference for investigating a French inheritance.
French Inheritance Tax
The French inhertance tax system differs in its approach from French inheritance law. For French residents, French inheritance tax will be charged on all assets in France (whether immoveable or moveable). This closes the loophole used by foreign purchasers buying French property via an SCI to avoid French inhertiance law implications. They can no longer avoid French inheritance tax andshares in a French property holding company will be subject to French inheritance tax.