«"Alexis, if I disappear tomorrow, will my wife be able to stay in this house? Will my children have to go into debt to pay the state?"»
There estate planning is often perceived as a taboo subject, associated with the end of life. Yet, at Balmont Conseil, We consider it the noblest and most strategic act of management. Succession planning isn't just about death; it's about life: the lives of your heirs, the continuity of your projects, and the transfer of your legacy. family values.
With ALTA, our Augmented Wealth Engineer With AI, the firm's mission is to transform this legal complexity into a clear path. Through innovation, we model your future so that your wishes are respected and tax pressures don't dismantle what you've spent a lifetime building.
What is estate planning?
Estate planning is a comprehensive process aimed at organizing the transfer of your assets (real estate, financial, business) during your lifetime or upon your death. It is part of a process of long-term wealth management, where anticipation becomes a tool for protection.
Unlike an inheritance that is imposed upon you, where the Civil Code mandates a default distribution (often rigid and costly), proactive planning gives you control over four major pillars:
Why is he crucial How to anticipate? What are the risks of a absence planning?
The absence of an estate planning strategy is not without consequences: it amounts to letting the Civil Code and the tax authorities decide for you. In France, the default legal framework is often rigid and can have serious repercussions, both financially and personally.
Anticipating means transforming a tax inevitability into a controlled transfer plan.
The burden of taxation: not being taxed
Without preparation, the transfer of your assets can be significantly reduced by inheritance taxes.
Direct line (parents/children): The progressive rates climb rapidly up to 45 % after a period of decline which does not regenerate if it is not used during one's lifetime.
Between third parties or distant relatives: For a partner not in a civil partnership, a friend, or a nephew, the tax can reach 60 %, that's more than half of what you wanted to convey.
Lack of liquidity: The tax authorities require payment of inheritance tax within six months of the death. Without planning ahead, your heirs may be forced to sell family property urgently, often below its market value, to settle this debt.
The trap of unlawful joint ownership (no will...)
This is the major risk in the absence of a will or a corporate structure (such as a SCI).
The decision-making deadlock: Your heirs become joint owners of each asset. To sell or rent, unanimity or qualified majorities are required. A single disagreement can paralyze estate management for years.
Forced selling: The legal adage "no one is supposed to remain in joint ownership" allows a single heir to trigger the judicial sale of the property, even if the others wished to keep it.
The vulnerability of spouses and blended families
French inheritance law protects children (forced heirs), sometimes to the detriment of the surviving spouse.
The risk of eviction: Without a "gift between spouses" or matrimonial arrangement, the spouse may find themselves in co-ownership with their own children, limiting their freedom of action over the family home.
The challenge of blended families: This is where a lack of foresight is most risky. The spouse may find themselves in direct conflict with children from a previous marriage. Without planning, the law does not allow for a harmonious balance of each party's rights.
Administrative complexity and liquidation delays
An unprepared inheritance often means a real ordeal for loved ones:
Asset search: Forgotten bank accounts, unclaimed assurance-vie policies, old property titles... the inventory becomes a headache for the notary.
Management costs: The costs of deeds, genealogists or legal disputes are added to inheritance taxes, further eating away at the net inheritance.
The importance of anticipation: Planning ahead doesn't mean divesting yourself prematurely, but putting in place the tools (disaggregation of ownership, assurance-vie, gradual gifts) that guarantee that your will premium on the automatic rules of the law.
The key steps to successful planning
The 155 B scheme becomes a complex engineering area when dealing with deferred compensation, typical of executives in Tech or Private Equity.
The legislative framework: Reserve and Available Quota
In France, the freedom to bequeath assets is regulated by law to protect direct heirs. Understanding this balance is the first step to regaining control over your estate.
The strategic objective: uSuccessful planning involves intelligently saturating the available portion while protecting the reserve, in order to guarantee the legal validity of your wishes and the peace of families.
Optimization strategies: Your protection tools
Life Insurance: Capital "outside the estate""
L''assurance-vie is the cornerstone of transmission. Thanks to its beneficiary clause, It allows the transfer of capital with specific tax allowances (€152,500 per beneficiary for payments before age 70), without being subject to the civil rules of the reserve (within certain limits).
Gifts between living people and Gift-Sharing
Giving gifts during one's lifetime allows one to take advantage of tax breaks every 15 years. donation-partage is particularly recommended because it fixes the value of the assets on the day of the gift, thus eliminating the risk of disputes during the estate settlement.
The division of ownership
It's a strategy of'tax optimization Major. You give the bare ownership of a property to your children while retaining the usufruct (the right to live there or collect the rent). Upon death, your children acquire full ownership without paying additional taxes.
The Dutreil Pact (for entrepreneurs)
For company directors, this pact allows 75% of the company's value to be exempted from transfer taxes, provided that retention commitments are respected.
Who can assist you in this process?
Planning is a multidisciplinary field. It requires the collaboration of several experts:
- The Wealth Management Advisor (CGP): This is the architect. They conduct the overall audit, define the strategy, and coordinate the other professionals. At Balmont Conseil, we use AI to simulate succession scenarios.
- The Notary: Essential for drafting authentic documents (gifts, wills) and for recording your wishes.
- The Inheritance Law Attorney: Useful in very complex family situations or for a legal consultation on specific assemblies.
FAQ Everything you need to know about Succession Planning
Anticipation is the key to a smooth transition.
A estate planning Success is that which brings peace of mind. By combining wealth education, legal tools and tax optimization, You are transforming a legal constraint into an opportunity to protect those you love.
Don't leave your inheritance to chance or the tax authorities. At Balmont Conseil, we help you build a equitable distribution of assets which reflects your wishes and secures the future of your loved ones.
Your wealth has a history. Let's ensure its preservation together.
Alexis Sagnier
With over 17 years of expertise in financial engineering, Alexis Sagnier assists executives and expatriates in securing their cross-border challenges.
Sources & References:
CGI: art. 757, art. 777, art. 990 I, art. 787 B (Dutreil)
BOFiP ENR-DMTG
Civil Code: art. 720, art. 815 (joint ownership), art. 912 et seq. (reserved rights)
