Inheritance planning: The expert guide to anticipating, protecting and optimizing your legacy in 2026

In summary…

There inheritance In France, taxation is not an inevitable burden, but rather a structure that can be planned. Without foresight, taxes can absorb up to 60% of your assets. By leveraging strategies such as splitting ownership rights, taking advantage of tax allowances that renew every 15 years, and purchasing assurance-vie before age 70, it is possible to transfer almost all of your assets with a near-zero tax burden.

1. Anticipate: Use the allowances every 15 years.
2. Dismember: Transfer the bare ownership to eliminate inheritance tax.
3. Secure: Use the donation-partage arrangement to solidify values and protect family peace.
4. Optimize: Assurance-vie and the Dutreil Pact are your best tax allies.

A few months ago, I met with a couple of expatriates who had recently returned to Lyon. They had built up a remarkable real estate portfolio both abroad and in France. Their fear? That their three children would be forced to sell the family home to pay off their mortgages. inheritance rights which they rightly considered confiscatory. "Alexis, we feel like we're working for the state," they told me. This feeling of dispossession is common. Yet, in terms of inheritance, French law, although rigid, offers exceptional opportunities to those who know how to anticipate them.

At the house of Balmont Conseil, We believe that transferring ownership is not just an administrative or tax-related matter; it's the final chapter of your investment strategy. Here's how we orchestrate this step for our clients.

Why is anticipating the transfer of assets a strategic imperative?

In France, the Civil Code protects heirs (the famous reserved portion of the estate) but the General Tax Code is not lenient. The inheritance refers to all the legal and tax mechanisms that allow the transfer of ownership of one's assets (real estate, financial, professional) to one's successors.

The cost of inaction: The progressive scale

If you don't prepare anything, your heirs will be subject to the legal scale. After a dejection For children over €100,000, the rates quickly climb: 20%, 30%, or even 45% in direct line. For third parties or cohabiting partners, the rate reaches 60%. Anticipate, It's about using time as an ally to multiply the abatements and freeze the value of your assets.

Balmont's Eye: «"Optimization is only effective if it is done with peace of mind. My role is to protect your assets against the changes expected in 2026, particularly by using Balmont AI to simulate the impact of potential rate increases on large inheritances."»

The levers of passing on knowledge while you're still alive: Giving to better preserve

To transmit during his lifetime is the most powerful way to reduce your tax bill. The principle is simple: the earlier you pay, the less you pay.

The golden rule of 15 years

Each parent can give each child €100,000 every 15 years without any inheritance tax. gift. By starting at age 50, you can "pass on" €200,000 per child completely tax-free before your statistical death.

Simple gift vs. shared gift: Avoiding inheritance conflicts

This is a point we emphasize during our feasibility audits. simple gift is a trap: at the time of death, the value of the property is "reported" to the day of division, which can create profound imbalances between brothers and sisters if one of the properties has increased in value more than the other.

There donation-partage, It freezes the values on the day of the gift. It is the ultimate tool for family peace.

[Image of the difference between a simple gift and a shared gift]

Property division: The ultimate weapon of estate planning

THE division of ownership consists of dividing full ownership of a property in two: the’usufruct (the right to use the property or to receive income from it) and the bare ownership (the right to own the walls).

Pass on the walls, keep the income

For an investor with a real estate assets In the rental sector, giving away the bare ownership of one's shares in a SCI (real estate investment company) or of one's buildings is remarkably effective:

1. Gift taxes are calculated only on the value of the bare ownership (according to a tax scale linked to your age).
2. Upon your death, the usufruct will merge with the bare ownership in the hands of your children. without any additional tax.

Attention : This arrangement depends on your family situation and the applicable tax treaty if you are an expatriate. An error in the configuration of the articles of association of a French real estate company (SCI) or an incorrect valuation of the usufruct may lead to reclassification as tax avoidance.

[Book a feasibility audit with Alexis Sagnier]

Assurance-vie and the PER (Retirement Savings Plan): The "off-the-beaten-path" aspects of inheritance

L'’assurance-vie remains the preferred investment of the French, not only for its return, but especially for its "non-inheritance" tax advantages.

• Before age 70: You can transfer up to €152,500 per beneficiary without any tax (Article 990 I of the French General Tax Code).
• After 70 years: The allowance falls to €30,500 (for all beneficiaries combined), but the interest produced is totally exempt (Article 757 B of the French General Tax Code).

THE PER (Retirement Savings Plan) It also offers interesting transfer opportunities, particularly in the event of premature death, allowing capital to be transferred while having benefited from a tax deduction upon entry.

Passing on your business: The Dutreil Pact shield

For business leaders, the inheritance Professionally, it can be a financial nightmare. Dutreil Pact is essential here. It allows, subject to conditions of commitment to retain the securities, to benefit from a 75% reduction on the value of the company for the calculation of duties.

Combined with a divided gift, The Dutreil Pact allows the transfer of a working tool worth several million euros with an extremely low residual tax burden (often less than 5 %).

Protecting the surviving spouse: Don't forget the essentials

In our practice at Balmont Conseil, We too often see spouses left destitute after a death. While marriage offers protection (total exemption from inheritance tax between spouses), a civil partnership (PACS) requires... will to give rights to the partner. Without a will, the PACS partner is a third party in the eyes of inheritance law.

For married couples, the gift between spouses (or gift to the last living) allows the surviving spouse's share to be increased beyond the legal share, by offering them, for example, the usufruct of all the assets.

Here is the supplementary section for your pillar page on the inheritance, written with the expertise and direct tone characteristic of Balmont Conseil.

Special cases and specific situations: The blind spots in your estate planning

Inheritance is not always a smooth process. While standard mechanisms apply to most cases, certain legal or professional situations radically alter the tax and civil landscape. Balmont Conseil, We use AI to simulate these "disruptive" scenarios that many forget to test.

The impact of your matrimonial property regime on inheritance

A marriage contract is the first step in estate planning. Yet, many of our clients are unaware of the true impact of their contract upon their death.

• Married couple without a contract (Legal community property): This is the default regime. Upon the first death, the community property is dissolved: the surviving spouse receives their half, and the other half constitutes the estate. The risk? A confusion between separate property (received through inheritance or owned before the marriage) and community property, potentially disadvantaging the children or the spouse.
• Separation of property: Ideal for business owners, this system can prove disastrous upon death if no survivorship clause or right of acquisition has been included. The surviving spouse may find themselves in joint ownership with the children of the primary residence without any property rights.
• Universal community with full attribution clause: It's the ultimate protection tool for the spouse. Upon the first death, the entire estate passes to the survivor without inheritance tax and without the need for probate proceedings. However, be aware: This arrangement can heavily tax the children upon the second death, as they only benefit from tax allowances once.

Civil partnership and cohabitation: The urgency of a will

Under the Legal framework of the PACS, The partners are considered third parties under the Civil Code in matters of inheritance.

• The observation is simple: Without a will, a civil partner inherits nothing.
• The Balmont tip: Once the will is written, the partner is totally exempt from inheritance tax (like a married spouse), while retaining their financial autonomy during their lifetime.

Exceptional exemptions: Sacrifice and gratitude

French law includes specific provisions for those who have served the nation or been victims of tragedies. In these moments of grief, taxation takes a back seat to recognition.

• Military personnel, firefighters, police officers and gendarmes: In the event of death during a law enforcement operation or rescue mission, the estate may be completely exempt from inheritance tax for the heirs.
• Victims of terrorist acts: A total exemption from inheritance tax is applied to the estates of victims, so as not to add a financial burden to the horror experienced by the families.

Reversion of life annuity: A protected income stream

For investors who have opted for an annuity payout (via a PER or assurance-vie), the clause of reversion This is a strategic move. It allows the surviving spouse to continue receiving all or part of the pension. From a tax perspective, this reversion between spouses or civil partners is exempt from inheritance tax, thus guaranteeing the survivor's standard of living without tax erosion.

Alexis Sagnier's opinion: «"Inheritance law is riddled with exceptions. A client who is a firefighter or a family who has opted for universal community property does not receive the same advice as an expatriate with separate property in Singapore. My role is to identify these specificities so that they become opportunities, not obstacles."»

Data Factsheet: Focus on Matrimonial Property Regimes

Data Factsheet: 2026 Tax Allowances

FAQ

• How to reduce the rights? Plan ahead through bare ownership gifts and use assurance-vie before you turn 70.
• Simple gift or sharing? Opt for a shared gift to fix the values and avoid conflicting civil relationships upon death.
• Dutreil Pact? A 75% reduction on the value of your company, provided you commit for the long term.

Conclusion: Your wealth deserves architecture, not chance.

There inheritance Tax planning is a discipline that leaves no room for guesswork. Every "set of indicators" (your tax residency, the nature of your assets, your family objectives) must be analyzed to build a robust strategy. By 2026, with the technological tools at our disposal, including Balmont AI for stress-testing your structures, there will be no excuse for leaving your heirs in a tax bind.

To transmit is to foresee. And to foresee is already to protect.

Do you want to secure the transfer of your assets?

Don't leave your inheritance to chance. I propose a Customized feasibility audit to map your options and optimize your taxation.

Sources:

• General Tax Code: Articles 777, 779, 990 I, 757 B.
• Civil Code: Articles 912 and following (Forbidden portion).
• ANACOFI Documentation: Guide to Good Practices in wealth engineering 2025.
• Tax scale for usufruct: Article 669 of the CGI.

Everything you need to know about the Dutreil pact :

• Definition of the Dutreil pact: everything you need to know about this business transfer tool
• Advantages of the Dutreil agreement: Securing the transfer of your family business in 2026
• Disadvantages of the Dutreil pact: The pitfalls and risks of a highly monitored system
• The Dutreil Pact and Taxation: The Expert Guide to the 2026 Reforms
• Objectives of the Dutreil Pact: To secure the continuity and sovereignty of the family business
• Dutreil Pact and family businesses: Securing the transfer and protecting your business assets
• Conditions for applying the Dutreil agreement: Securing the transfer of your business assets in 2026
• Inheritance planning: The expert guide to navigating inheritance, taxation and family protection
• Inheritance planning: The expert guide to anticipating, protecting and optimizing your legacy in 2026
• Transferring a family business via the Dutreil agreement: The strategic guide to ensuring the long-term viability of your family business