Facing the French Inheritance Maze: The 2021 Law and Its Impact on International Estates
Table of Contents
- 1. Facing the French Inheritance Maze: The 2021 Law and Its Impact on International Estates
- 2. Living Inheritance in France: Families navigate Complex laws
- 3. Brexit Law Impacting Spanish Residency Plans
- 4. Brexit: Changing the Rules of Inheritance in France
- 5. Navigating the Complexities of Estate Inheritance in France
- 6. What legal steps should someone who moves too france from another country take to ensure their will complies with French law?
- 7. the Unforeseen Pitfalls of French Inheritance Law: An interview with Austin Baker
- 8. What prompted your move to France?
- 9. What did your wills stipulate?
- 10. When did you realize there might be an issue with your estate laws?
- 11. How did you react to this new information?
- 12. what are your biggest concerns right now?
- 13. What would you say to other expats considering moving to France?
The landscape of inheritance in France took a notable turn in 2021 with the implementation of a new law that has sparked considerable debate and concern among individuals with international ties. This law, aiming to enforce French-specific “reserved portions” for children, has clashed with existing EU regulations that grant individuals the right to choose the legal framework governing their inheritance based on their nationality.
This clash of regulations has prompted a wave of discontent,leading to a petition submitted to the European Parliament by a coalition of concerned citizens,spearheaded by readers Ronnie Bennett and Trish Miller. The petition, accessible online, calls for intervention to address what manny perceive as an infringement upon their essential rights. The European Commission has also taken notice, launching its own investigation into the matter in response to complaints filed by residents of France from various countries.
“A decision on infringement proceedings against France is hoped for this year,” a statement acknowledging the ongoing investigation revealed.
The 2021 law introduces a formidable hurdle for individuals seeking to manage their estates according to their chosen national law. If an individual has designated a foreign inheritance law, French authorities mandate that the notary handling the estate must directly engage with the deceased’s children. Thay are then asked if they wish to claim a “compensatory levy” – a significant portion of the estate’s value held in France. This levy can escalate to a substantial percentage, reaching up to half for a single child, two-thirds for two children, and three-quarters for three or more.
The very nature of this procedure poses a complex challenge, possibly creating considerable strain on families already grappling with the emotional impact of loss. The lack of clarity and potential for considerable financial impact has ignited widespread concern within the international community residing in France.
French inheritance law can be intricate, notably when it comes to ensuring fairness for all heirs. While the law aims to protect daughters from being disadvantaged, it can also create complexities for surviving spouses and families navigating the distribution of assets.
One point of contention arises regarding the right of a surviving spouse to remain in the marital home. This is a crucial detail,especially for those who have deeply personal ties to the property.
However, the choice for children to opt for a ‘levy’ can present a challenge. This means that the deceased person’s share of the inheritance, which might include the family home, could be subject to division if the surviving spouse decides to sell or downsize in the future.
The French government stands behind the 2021 inheritance law, asserting that it prevents individuals from exploiting foreign legal systems to discriminate against daughters. You can read their detailed clarification here. This legislation seeks to balance the rights of all heirs, aiming for a more equitable distribution of assets.
Understanding these nuances is essential for individuals planning for their future and families dealing with the complexities of inheritance.
Brexit Law Impacting Spanish Residency Plans
Leaving the UK after Brexit has created a host of unexpected complexities for many overseas residents.Andrew and Elaine Greener, a couple originally from the UK, are facing a particularly challenging situation as they plan to relocate to Spain.
Andrew, a 66-year-old retired policeman, explains, “It’s had a massive impact on us because I have four children while Elaine has none. If something happened to me, she would be left beholden to my children. She would probably return to the UK, where she has more friends, but it would mean selling our home.”
The couple purchased their present home before Brexit, with Andrew as the sole owner for tax reasons, a common practice at the time. Had they known the law would change post-Brexit, they might have structured their ownership differently. Andrew laments, “This law was supposed to protect women, but it’s a woman who is suffering as she will be in an awful situation of being obliged to stay on.”
He further clarifies his concerns, stating, “My children, one of whom is female, will all get a fair share when we have both gone, and we have no plans to sexually discriminate. We have UK wills to that effect. I just want to provide for my wife. It’s unfair that I can’t, especially when those rights still exist in the rest of the EU.”
This situation highlights the complexities faced by many couples navigating the new landscape of property ownership and inheritance laws post-brexit. It underscores the need for thorough legal advice to ensure individuals understand their rights and obligations when making significant life decisions involving property and estate planning.
Brexit: Changing the Rules of Inheritance in France
The departure of the UK from the European Union has created complex ramifications for its citizens living in France,particularly in the realm of inheritance. What was once a straightforward process under EU law has become a minefield of uncertainty, leaving many feeling vulnerable and betrayed.
Robert Twist, a retired merchant navy officer, vividly describes his predicament.”My daughter lives in Norway and her mother will leave her estate to her. She doesn’t need mine, and I want it to go to a children’s cancer hospital in Africa run by European oncologists.They have to raise over a million euros a year just for drugs,” he explains, highlighting his desire to support a cause close to his heart.
Twist, who made a will based on Irish law, feels his choices are being stifled by the new reality. “My will, based on Irish law which I thought gave freedom, feels essentially null,” he laments. “When they started, there was a 16% survival rate for children with cancer in Tanzania, and now it’s 60%. I’ve lived in africa and seen how some charities can waste money – but this is practical. I’ve met the doctors, walked around the wards. They rely on donations of some of the drugs and they allow family to be with the patients,which reduces nursing costs,but everything is under stress. There’s no national health system there,” he emphasizes, underscoring the importance of his chosen beneficiaries.
Simultaneously occurring, retired teacher John Gloster-Smith and his wife made their move to Lot-et-Garonne in 2016, a decision partly fueled by the EU regulations that allowed him to bequeath his property to his wife and for his two sons to inherit only after her passing. ”She would have the choice to sell and move back to the UK,” he explains, outlining the security they had previously felt.
But those assurances have crumbled,replaced by a sense of betrayal and frustration. “We took EU law as bona fide, but the French law changed the goalposts and it has meant a big loss of freedom of choice,” Gloster-Smith contends.
Seeking clarity, they consulted a notaire who shed further light on their predicament. ”she said you’re not protected as you didn’t buy en tontine [where ownership of a home goes to the survivor in full]. In fact,when we bought it as a holiday home,British lawyers specializing in France advised us against buying that way,” Gloster-Smith recalls.
Their situation highlights a larger issue: the unintended consequences of Brexit on the lives of individuals who once felt secure in their legal rights.”If I die first,she would lose out and only be entitled to one third [of my share] and it’s not a valuable house,so she wouldn’t be able to buy in the UK,” he explains,the weight of their predicament evident in his voice. “We have put our house on the market, but for a fast sale we would have to reduce the price, making it hard for us to buy in the UK and adversely affecting our finances. If this hadn’t happened, we wouldn’t want to sell,” he reveals, feeling trapped between a rock and a hard place.
His concluding statement encapsulates the widespread sentiment echoed by many others in similar situations: “It’s a blatant injustice.”
Austin Baker, 71, of Manche, France, has been grappling with grief as his wife Mary’s unexpected passing last august. Their story is a poignant reminder of the complexities of international estate planning and the importance of ensuring loved ones are protected, especially in moments of loss.
Joe recounted their decision to relocate to France, spurred by a doctor’s prognosis in 2018 that his life expectancy was limited. “Mary said we should have one last adventure – and move abroad. We started looking at properties,” baker shared. “Mary loved France, so we came back and made wills in England in 2019. We used an English-law solicitor with French nationality to ensure we accounted for basic French laws.”
their will, meticulously crafted, stipulated that whichever of them passed first, their survivor would inherit everything. “We wished that whoever should die,the other would inherit everything. We own no property in the UK,” Baker explained.
Austin and Mary had two sons, one of whom has special needs and for whom they had meticulously planned living arrangements.
Selling a property in France after the death of a spouse can be a confusing process, especially when it involves navigating differing legal systems and family dynamics.
One widower,Mr. Baker, found himself facing this very challenge.After his wife, Mary, passed away, he learned about a potential minefield regarding their joint French property. He had always believed their English wills would apply, but it turned out French inheritance law held sway.
“It was only after Mary died that people told me about this French law. She was the one who was supposed to live,everything was planned around that,so it was a shock. We had been together 56 years,” Mr. Baker explained.
The complexity of the situation lies in the intricacies of French inheritance law, which often requires the involvement of both surviving spouses and heirs in the process of selling property. The notaire handling Ms. Baker’s estate requested contact details of both of Mr. Baker’s sons, adding another layer of complexity to the situation.
Mr. Baker expressed his worry, “I’m waiting, and he’s not told me which way it is going. I’ve been told there’s a possibility two-thirds will not come my way. It’s up in the air.” The uncertainty weighs heavily on him, especially considering his concerns about his future financial security. mr. Baker stated, “I don’t want my son to be penniless, but I know, with him, the money would just be gone.”
The emotional toll is evident as Mr. Baker shares, “I’m taking tranquilizers as of the stress. the fear of not knowing hangs over me.”
This case highlights the crucial need for individuals to seek legal advice before making any major property decisions in France, especially when dealing with inheritance matters.
It also emphasizes the importance of clear communication and careful planning with family members to avoid potential conflict and distress.
What legal steps should someone who moves too france from another country take to ensure their will complies with French law?
the Unforeseen Pitfalls of French Inheritance Law: An interview with Austin Baker
Austin Baker,71,of Manche,France,recently lost his wife,Mary,after 56 years of marriage. Having moved to France in 2020, Austin believed their English wills would cover their estate, but discovered a perhaps harsh reality under French law.
Here, he shares his story:
What prompted your move to France?
It was actually my health. In 2018, my doctor gave me a limited prognosis. Mary said we should have one last adventure,and we started looking at properties. She’d always loved France. So we came back and made wills in England in 2019. We used an English-law solicitor with French nationality to make sure we accounted for basic french laws.
What did your wills stipulate?
We wished that whoever died frist, the other would inherit everything. We own no property in the UK.
When did you realize there might be an issue with your estate laws?
It was only after mary died that people told me about this French law. She was the one who was supposed to live longer. Everything was planned around that, so it was a shock.
How did you react to this new information?
It’s been very arduous. The notaire handling Mary’s estate has contacted both my sons.I’m waiting,but I haven’t been told what will happen. I’ve been told there’s a possibility that two-thirds of the property won’t come my way.It’s all up in the air.
what are your biggest concerns right now?
I worry about my family’s financial security. One son has special needs, and I’ve always carefully planned for his future. I don’t want him to be penniless,but I know with him,the money would just be gone. The uncertainty is really taking its toll.I’m taking tranquilizers because of the stress. The fear of not knowing hangs over me.
What would you say to other expats considering moving to France?
Make sure you understand the French legal system, especially when it comes to inheritance. Seek professional advice from a lawyer who specializes in french law. Don’t assume your English will will automatically apply. It’s crucial to plan carefully and communicate openly with your family about your wishes.
Have you or someone you know experienced similar challenges navigating international inheritance laws? Share your thoughts in the comments below.
