Inheritance Laws in France - Recent Changes

Inheritance Laws in France - Recent Changes

The new laws updating the rules relating to inheritance in France were adopted in June 2006 and apply from January 1 2007.

Although these laws allow more flexibility, there are no changes in the basic structure. The most important change is the definition of a reserved heir.

These are the main changes affecting people buying property in France

In most cases parents are no longer considered reserved heirs.

An inheritance must now be accepted or refused withing 5 years, previously this was 30 years.

Grandchildren may now have assets left directly to them as long as the children agree.

A reserved heir may now renounce their right to an inheritance during the lifetime of the parent. This must be witnessed by two Notaires.

Marriage contracts need no longer be confirmed by a court, saving time and expense.

It is now possible for families to agree the way their inheritance is arranged. This is through a Pacte de Famille which is signed by all concerned. The Pacte de Famille is done through a Notaire and now ensures that any arrangement previously done orally can be formalised.

New "marriage contracts" will no longer have to be ratified by the courts, in any circumstances, which will make the use of this type of arrangement simpler and cheaper

Assets may now be left to a particular person, provided that the asset or the value of the asset will be returned to the beneficial inheritor. This will help to protect the surviving spouse have the use of a property with the children ultimately inheriting. This is particularly relevant for second marriages where there are other children.

This is a very brief resume of the recent changes and I do not pretend to be a legal expert. At all times qualified and independent legal advice must be sought.