Dating back to the Napoleonic era, forced heirship rules under French law means that your assets may not pass to your loved ones – regardless of what it says in your will.
Even if the terms of the will match the will-maker’s intentions, there may be significant adverse tax consequences of up to 60%.
However, by using the provisions of EU Regulation 650/2012 (sometimes called Brussels IV), it is often possible for a will-maker to choose the law of their nationality in their will.
For many clients this means that they can choose for Anglo-Welsh, or Scottish or Northern Irish law to apply, or indeed any other law, provided it is the law of (one of their) their nationality/s, rather than default to (often problematic) French succession law, but where different lawyers are used for the French and UK assets, or where non specialist UK or French lawyers are used, technical mistakes arise and the choice of law often fails.
Our specialist international and cross-border lawyers provide holistic succession and taxation advice for both the French and UK assets, ensuring the will-maker’s wishes are met and the tax is fully understood.
Where a choice of law is not possible, not desirable or ineffective, we can advise on alternative succession structures including matrimonial property regimes and usufruits.
Our services:
Draft and structure both your UK and French wills, so that they are formally and essentially valid in the UK and France;
deliver planning solutions to meet your wishes, in so far as that is possible in your circumstances;
plan for tax efficient results;
review existing, or advise on new matrimonial property regimes;
analyse your domicile and residence under the common law and civil law definitions;
consider spousal and child rights;
consider children from previous relationships in relation to succession (who gets what) and taxation – which may be much higher for blended families;
mitigate conflicts of laws using Private International Law;
provide in-depth advice on the provisions of the European Succession Regulation 650/2012 (Brussels IV);
provide a detailed report into your liability to UK Inheritance Tax and estate planning opportunities;
deliver a generic overview of the French Inheritance Tax regime;
and advise on the mitigation of double taxation under the 1963 Anglo French Double Taxation Convention.
“This area of law is so specialist that we often tell foreign lawyers what the law is in their own jurisdiction.”
Daniel Harris, Partner
Bespoke UK–France Probate and Estate administration
When a friend or family member passes away with assets in France, the estate in France should be managed as a whole with the estate in the UK (and elsewhere if appropriate) to avoid costly adverse tax and succession consequences, where uncoordinated individual lawyers are appointed across jurisdictions.
By ensuring accurate application of the applicable private international laws, ourholistic, cross-border probate service ensures the value of assets is maximised while keeping tax to aminimum.
To do this, we can:
Assess which legal system applies to which assets;
Interpret who is entitled to the estate, taking into account the ‘Napoleonic’ French forced heirship rules and the complexities of the EU succession Regulation 650/2012 (Brussels IV);
Advise on the tax position, and which jurisdiction has primary taxation rights, particularly in relation to the Anglo/French double taxation convention;
Assist with the sale and/or transfer of movable and immovable assets (where appropriate) both in the UK and France;
Appoint a dedicated individual to project manage the UK and French estates;
Work with proven French (and if applicable other foreign) lawyers to analyse what work needs to be completed in France;
File the UK tax return (where necessary);
Applies for a UK grant of probate (to cover the UK assets);
Instruct our proven French lawyers to file French tax returns and settle any French tax liabilities;
Co-ordinate and assist with obtaining an Acte de notoriété, the French equivalent of a grant of probate;
Mitigate double taxation by applying the appropriate provisions of the double taxation convention;
Provide HMRC with an analysis of the deceased’s residence for inheritance tax purposes;
Ensure UK and overseas assets are distributed to the correct beneficiaries under UK and French law;
and advise on the scope of making variations, for the purposes of post death tax planning from a UK and international perspective.
We can also assist with non-legal support including help with:
the repatriation of the deceased to the UK;
UK and French funerals; and
and marketing and selling the deceased’s French properties.
Ready to take the next step?
Please fill in the form below to submit your enquiry, or get in touch by email or telephone: 0117 923 4042 / communications@knightsplc.com.
