Death and State charges
 

Following the death of a friend's sister, who died with no children, a charge of 40% is being levied against the value of the house she inhabited. Both live(d) in France next door to each other. The house remains unsold, so the surviving sister is having to take out a loan to cover this cost.

Can anyone thrown any light on this aspect of French 'tax'?

Re: Death and State charges
 

I'm afraid this is typical of the French Taxe de Succession. Siblings have to pay 40% of the value of the deceased assets, or refuse the inheritance. I recently posted the same sort of warning for unmarried couples - the surviving partner has to pay 60% of the deceased's assets. Not only the value of any property, but also of savings bequeathed. Luckily my neighbour has managed to sell her concubine's house, albeit at a low price for a quick sale, and doesn't need to take out a loan. And luckily they lived in her own house and she isn't homeless due to the sale....:blink:

Re: Death and State charges
 

Thank-you dmu as always. Our friend has had a surfeit of tragic issues. Her husband died of cancer, the sister I referred to above died of cancer also. She is now alone with her sister's dog for company. Fortunately she has good French language to be able to handle all the residual affairs of the family. She was offered a loan via the notaire, but has since been advised to speak with her bank as the notaire would arrange a loan, the interest of which would not be as competitive, as the notaire also earns from the loan. I do not know how true that is, just repeating conversation.

Re: Death and State charges
 

As dmu says, one can, in theory, refuse the inheritance - though there may be a time limit for doing this. However she would have to refuse the entire inheritance, you can't pick and choose. But if the house was all that was left to her, and she can't sell it, at least she wouldn't be liable for the 40%.

Re: Death and State charges
 

Just out of interest, what would happen to the house after such a refusal to accept? Would it become the property of the State and if so what would "they" do with it?

Re: Death and State charges
 

I believe that it eventually goes to the commune, rather than the state. So depending on the house - sell it, or social housing, or storage, or pull it down. But I think there has to be a waiting period of a lot of years in case another heir comes forward.

Re: Death and State charges
 

^^ Cheers. It makes sense in a French sort of way. ;)

Re: Death and State charges
 

I'm told the authorities are demanding the payment even though the house, advertised for sale, is not sold.

Re: Death and State charges
 

Yes, I'm afraid this is so, which is why a loan is necessary if the property hasn't been sold. If the Taxe hasn't been paid by the deadline, there's the usual fine to pay the Fisc, but I've no idea how interest on a loan compares to the percentage of the fine (10%?). A horrible situation to be in, esp in such sad circumstances...:(

Re: Death and State charges
 

Sorry - I meant that if she had decided in the first place to turn down the inheritance because she knew the house would be difficult to sell, she wouldn't have become liable to pay inheritance tax on an inheritance that she had not accepted. But since she has put the house on the market, I guess that means she's accepted the inheritance, so she is liable for the taxes.

My only blood relative will be my brother in the UK, he has no spare cash and he's already decided he won't be claiming my property in France when I die.

Re: Death and State charges
 

This is broadening into an interesting subject and I wonder how many of the empty and often left to dilapidate houses I see around our area are caught in a no win tax environment. If you don't accept the inheritance because of the fiscal hit, how might a property go forward, sold via a notaire perhaps? Lotissement are being developed while older, stone houses perhaps are left to fall down and become an eyesore.

I have personally never agreed with not disinheriting your children. That is and should be a freedom of choice. Scenario: a son/daughter stabs their father/mother with intent to kill and is tried and sent to prison. Why would that father/mother wish to have that child inherit? It seems to go against at least one of the tenets of the national motto of France.

Re: Death and State charges
 

I believe that there is a way in France to disown or disinherit children, but it has to go through the courts. I may be wrong about that, though.

At any rate, I've never agreed with the casual way with which children can be disinherited in Britain. Take the case, for instance, of a child who has cared for, say, his mother, all his life, and on her death finds that she left, according to some old will, all her money to some charity and that he's penniless and homeless.

Re: Death and State charges
 

How correct you are. There is one in this hameau that the commune are trying to get their hands on. The problem is that there is absolutely no legal access other than a 1.5 metre path from nowhere to the property because the adjoining land is in dispute.

In the meanwhile there are 4 habitations going up on the other side which will not look nearly as good as this lovely building, which could easily make 4 lovely appartments. Everyone from Maire to postman are tearing their hair out but apparently nothing can be done until the dispute is resolved.

Re: Death and State charges
 

I take your point, but would I look after, or you perhaps a sick and ageing parent on the basis of a 'reward'. There will always be aspects of inheritance that one might consider unfair, inappropriate or down-right bloody-minded.

I have fallen out with my elder daughter. An impasse, a few months old that I shall seek to repair. If matters cannot be resolved would I change my will to favour only my younger daughter? No, I would not, but I have the choice to do that. In France cmread may well be correct and maybe it is right to have a tough time to disinherit children. I also have to recognise that our two cultures are set far apart but that my freedom to choose is something I value.

Re: Death and State charges
 

It"s not a matter of looking after a sick parent on the basis of reward, it's a matter of people not being left homeless and penniless after doing the right thing. Are people supposed to be punished for being virtuous? Because that is what can easily happen.

It's simply too easy for money to go to charity in the UK and many of these charities, you know, are false ones. They also offer 'free' will-writing services if they are included in the will, which I think is a form of corruption.

With freedom of choice comes responsibility. The problem is, for the person writing the will, it is all too easy in the UK to be irresponsible and leave all the problems for the family to deal with. Maybe the French way isn't the best way, but I'm convinced that neither is the British way.