To say that succession planning can be a complex subject for UK nationals living in France would be an understatement. Much of this complexity concerns the concept of “forced heirship,” whereby children of the deceased have a right to a minimum share of the latter’s estate. You will also hear the “forced heirship” referred to as succession rules/law or inheritance law/rules.
So, what are the essentials of these “forced heirship” or “réserve héréditaire” rules in France, including how they differ from the situation in other countries, and what are the potential implications for the planning of your estate?
What are French forced heirship rules?
The underlying objective is that the family is protected, and money from parents should be filtered down to the next generation. Therefore, children are deemed “reserved heirs”, meaning they must inherit a certain fraction of the deceased’s estate upon their parent’s death.
This means that when the first parent dies, the children will have a protected right to inherit a portion of the estate, which they will share with the surviving spouse.
Under French inheritance law, the reserve is the reserved part of the deceased individual’s estate. This leaves the “quotité disponible” as the portion that can be freely disposed of – for example, it can be left to the deceased’s spouse or PACS (civil) partner.
How do French heirship rules differ from other countries?
France’s approach to the laws covering the inheritance of assets differs markedly from the situation in the UK. British nationals are accustomed to testamentary freedom, which allows them to leave their assets according to their wishes.
In France, however, the “forced heirship” principle, which is embedded in the French constitution and dates back to Napoleonic law, generally states that both French nationals and foreigners cannot use a will to choose who will receive their assets when they die, at least only within the limits of the rules.
However, in 2015, the European Succession Regulation (650/2012), also known as “Brussels IV,” came into force. This legislation enabled people to “elect” for the law of their nationality to apply to their will in France.
In practice, while the French succession law continues to be significant and can be tricky to circumvent, there are potential ways of circumventing it.
Who is affected by French forced heirship rules?
The French “forced heirship” rules apply not only to French residents, but also to non-French residents who own residential property in France. So, UK nationals with a second home in France are among those who have historically come under the scope of these rules. This meant they were prevented from leaving their French property in their will to whoever they wished.
For French residents, the country’s succession law applies to their worldwide assets, except any real estate they own outside France.
As I mentioned, the EU’s “Brussels IV” law now exists. This gives non-French nationals – such as those from the UK – a means of opting for their nationality’s succession law to apply instead of French law.
However, a change to Article 913 of France’s Civil Code, effective November 1, 2021, has introduced a caveat. If a French resident’s assets pass according to a foreign succession law that does not follow forced heirship (like UK law), the resident’s “protected heirs” (biological or adopted children) can claim the share they would be entitled to under French rules.
While France has no jurisdiction over assets outside its borders, any assets within France may be used to ensure heirs receive their French law “protected share” if they make a claim. This means that French assets could be used to compensate for any shortfall, regardless of the chosen succession law.
This is being heavily contested in the EU courts and may be overturned; however, there is no movement yet. In October 2024, the Commission responded to campaigners, stating they are “working on your case” and considering the steps, including possible infringement proceedings against France.
What portion of your estate is reserved for heirs under French law?
Under the French “forced heirship” rules, the exact proportion of the deceased’s estate that the children must inherit will depend on how many children there are to inherit.
If one child stands to inherit, they must receive half of the estate. If there are two children, they will receive two-thirds of the estate, and in the case of three children or more inheriting under French succession law, they will be left three-quarters of the estate.
The best way to remember this is “1 half, 2 thirds, 3 quarters”, each digit indicating the number of children and the fraction.
The remaining fraction is unreserved, so the donor can choose who receives it on their death. This quotité disponible can, therefore, be used for non-heir beneficiaries such as charities, friends, or other relatives.
For clarity’s sake, it should be noted that the fractions above refer to the deceased’s part of the estate. This means that if, for example, the deceased owned half of the given property and they had one surviving child, the child would receive half of the half, therefore, a quarter of the property overall.
If the donor wishes to choose where their money goes, it usually is possible for them to leave their surviving partner the right of use, or “usufruit” (the right of use, or life interest), of a property. This would give the “usufruitier” (the person with the life interest) the right to live in the property and make any alterations they wish to make.
Can you override French forced heirship rules?
Although there are ways of circumventing the French succession rules, UK nationals must be careful to avoid unexpected consequences.
As already explained, Brussels IV provides a means by which you can opt to have the succession law of your nationality apply, instead of French law. However, I have previously written about certain important things to know about this much-talked-about law.
You might wonder whether you can entirely disinherit your children in France. The rules were established to prevent children from being disinherited, so completely disinheriting children would be challenging, and it would depend on what extremes you were willing to go to in order to achieve such an aim.
Even if you die domiciled in the United Kingdom, French succession law will apply to any French real estate you own. This ensures that children automatically inherit a portion of their parent’s estate.
Can you use gifting to mitigate forced heirship constraints?
Some UK nationals who are looking for ways to reduce the size of their estate and control the distribution of their inheritance may be interested in how strategic gifting throughout their lifetime could enable them to achieve this.
Britons considering this should have a strong knowledge and understanding of the rules and tax implications for gifts to heirs in France. French Gift Tax is imposed on giving a gift, or a “donation”, to use the French term, of money or property to a child, spouse, or another family member in France.
Our introduction to French Gift Tax details the rules applicable regarding the kinds of gifts and transfers of ownership allowed and the level of “Droits de Donation” (Gift Tax) the recipient will be liable to pay.
The Gift Tax exemption resets every 15 years. This means that after this period has elapsed, another gift may be made up to the exemption limit without any tax consequences. UK nationals might be interested in spacing out gifts over time, but such a long reset time makes this approach more difficult.
Life insurance, or “assurance vie,” may also be used as an inheritance planning tool in France. As I have previously written, assurance vie is essentially a life insurance “wrapper” in which investments are held. It is a highly versatile product that allows financial assets to be left to chosen heirs, with no French inheritance tax needing to be paid.
What should expats consider when creating a will in France?
You may be a UK citizen presently living in France or have assets in France and the UK. Whatever your circumstances, by developing a solid understanding of the nuances of French tax law and succession planning and how specific provisions may apply, you will be better placed to make the right decisions on dealing with your will.
For expats affected by the French forced heirship rules, their assets will not automatically pass in accordance with their will. Therefore, to avoid legal conflicts, such expats must achieve clarity in their cross-border estate planning. Those with assets in two or more countries may require more than one will.
For example, A UK national living in France with a residence in the UK would typically have a UK will for their UK property. This is because the UK / France succession treaty cites that UK property is dealt with exclusively under UK law. A will for France would also be required since it is the country of domicile (also agreed in the UK / France tax treaty). Thus, worldwide assets are assessable in France. Getting this wrong, however, can get very messy, so professional advice is required before writing multiple wills.
Conclusion: It’s Complicated!
Yes, and we have not even touched on inheritance tax!
In summary, however, the French forced heirship rules have substantially impacted those seeking to plan their estates according to their wishes. Children are deemed “reserved heirs.” The French constitution dictates that children must inherit a specific portion of their parent’s estate when the latter dies. This portion can be as much as three-quarters (75%) of the estate if there are three children or more.
Although options for circumventing these rules exist, such as “Brussels IV,” UK nationals who pursue them may find unexpected and undesirable consequences. This complexity underscores the importance of expats receiving specialised legal and financial advice tailored to their situation before they take any particular action.