Inheritance tax and houses in france
Jun 29th 2005, 11:18 am
#1
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Joined: Jun 2005
Posts: 3
Inheritance tax and houses in france
ARGGG FRENCH INHERITANCE LAW AND HOUSE BUYING!
We ( a couple with 1 child) are in the process of house buying in france, and have been advised by a notaire on various ways of setting up the ownership between myself, my wife, and son to live in it and to minimise any inheritance.
I am concerned having read some of the forum and seeing that people are going for a tontine arrangement which comes under french inher’itance law and has a limit of less than €50,000 before tax is due at the time of death. and that the children will inherit the other halves half on death as normal within french law!!! Is this right?
Another option that was discussed was Universal Communauty, which is covered under European law art.6 which keeps the kids out of the picture but leaves the 50,000 limit for the spouse.
The final option I have been offered is to remain as a main tax resident in the UK, and to set up a SCI , which is a french transparent company, and to give the shares to our son now, but to retain the right to vote on the companies decisions(our son will have no voting rights until we are both dead). as shares are classed as Meubles they can be given to an upper limit every year until he has them all(we can do it all at once as the value is low). He will avoid all french inheritance law and will be covered by british inheritance which has a limit around £250000 at the moment before tax gets it teeth in.
From what I understand, we no longer hold the shares in the company, only the right to vote, we do not have to declare it to the UK taxman on our returns.Its all too complicated for a layperson like me, and I was wondering if anyone has any advice.
Thanks in advance.
We ( a couple with 1 child) are in the process of house buying in france, and have been advised by a notaire on various ways of setting up the ownership between myself, my wife, and son to live in it and to minimise any inheritance.
I am concerned having read some of the forum and seeing that people are going for a tontine arrangement which comes under french inher’itance law and has a limit of less than €50,000 before tax is due at the time of death. and that the children will inherit the other halves half on death as normal within french law!!! Is this right?
Another option that was discussed was Universal Communauty, which is covered under European law art.6 which keeps the kids out of the picture but leaves the 50,000 limit for the spouse.
The final option I have been offered is to remain as a main tax resident in the UK, and to set up a SCI , which is a french transparent company, and to give the shares to our son now, but to retain the right to vote on the companies decisions(our son will have no voting rights until we are both dead). as shares are classed as Meubles they can be given to an upper limit every year until he has them all(we can do it all at once as the value is low). He will avoid all french inheritance law and will be covered by british inheritance which has a limit around £250000 at the moment before tax gets it teeth in.
From what I understand, we no longer hold the shares in the company, only the right to vote, we do not have to declare it to the UK taxman on our returns.Its all too complicated for a layperson like me, and I was wondering if anyone has any advice.
Thanks in advance.
Jul 1st 2005, 5:16 pm
#2
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Joined: Mar 2005
Location: east of Chalon sur Saone
Posts: 257
Re: Inheritance tax and houses in france
Think you got that quite right 
I looked at this too, and EVERY child from no matter how many marriges gets to pay ........ nice eh?
The house cant be passed from husband to wife. and if you had an estranged child from 'say' 3 marriges back they get a nasty bill for tax!!!
Is it best to buy the house in your childs name??? But by paying tax in the UK, you are doomed when it comes to CAPITAL GAINS TAX.... they'll (think i read it right?) lob an automatic 3x value on you if they cant see your taxation.
I looked at this too, and EVERY child from no matter how many marriges gets to pay ........ nice eh?
The house cant be passed from husband to wife. and if you had an estranged child from 'say' 3 marriges back they get a nasty bill for tax!!!
Is it best to buy the house in your childs name??? But by paying tax in the UK, you are doomed when it comes to CAPITAL GAINS TAX.... they'll (think i read it right?) lob an automatic 3x value on you if they cant see your taxation.
Jul 4th 2005, 10:43 am
#3
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Joined: Jun 2005
Posts: 3
Re: Inheritance tax and houses in france
thanks for the advice, i will dig deeper.
D
D
