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Wealth transfer & inheritance
What happens on death: who inherits, who pays, and how long it takes.
An inheritance follows civil law to determine who inherits, and tax law to determine how much each person pays. Both are settled within six months. Anything not decided beforehand is decided by default, and often at a high price.
Who inherits
What the law provides when nothing has been put in writing.
They have a reserved share: half the estate for one child, two-thirds for two, three-quarters for three or more (Article 913 of the Civil Code). The rest can be freely given or bequeathed.
If all the children are the couple's own, the spouse choosesusufruct of the whole estate or a quarter in full ownership; otherwise, the spouse receives a quarter in full ownership (Article 757 of the Civil Code).
They do not inherit without a will. A PACS partner named in a will is exempt from tax; a cohabiting partner pays 60%.
The steps
From death to division of the estate.
| When | What is done | Who handles it |
|---|---|---|
| The first few weeks | Affidavit of heirship, search for a will, inventory of accounts and contracts | The notary |
| One month after the documents are received | Payment of assurance-vie proceeds to beneficiaries, outside the estate (Article L. 132-23-1 of the Insurance Code) | The insurer |
| Within 6 months | Inheritance tax return and payment of inheritance tax | The heirs, with the notary |
| Afterwards | Division of the assets, or keeping them in joint ownership | The heirs |
Inheritance tax can be paid in instalments on request, and payment can be deferred and spread over 15 years for the transfer of a business (Article 397 A of Annex III to the French Tax Code).
What can be decided beforehand
Each topic has its own page.
Frequently asked questions
What clients ask us.
What happens if the tax is not paid on time?
Late-payment interest of 0.20% per month runs from the 7th month (Article 1727 of the French Tax Code), and a surcharge is added if the delay continues (Article 1728). Hence the value of an assurance-vie that provides cash for the heirs.
Can a child be disinherited?
No, under French law: their reserved share is guaranteed (Article 913 of the Civil Code). You can, however, give them less than the disposable portion, and use assurance-vie, which falls outside the estate within the limits of Article L. 132-13 of the Insurance Code.
How can you protect a PACS partner or cohabiting partner?
Through a will, without which they do not inherit, and through assurance-vie. A PACS partner is exempt from tax; a cohabiting partner pays 60% on an inheritance, but receives €152,500 tax-free as the beneficiary of an assurance-vie funded before age 70 (Article 990 I of the French Tax Code).
The deceased lived abroad: does France tax the estate?
Yes, on assets located in France, and on all assets if an heir has lived in France for at least 6 years in the last 10 years (Article 750 ter of the French Tax Code), subject to tax treaties. The Complex estates page details these cases.
