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Estate planning
Decide for yourself what your loved ones receive, and what the state takes.
Without preparation, the law divides your assets and taxes them at a rate of up to 45% between parents and children, and 60% beyond the immediate family. With renewable allowances, assurance-vie, and the gift of bare ownership, the tax bill can be reduced by half or more.
The allowances
What everyone can receive without rights.
€100,000 per parent, renewed every 15 years (articles 779 and 784 of the CGI). Two parents, two children: €400,000 every 15 years.
€31,865 by grandparent as a gift, every 15 years (article 790 B of the CGI).
€31,865 Moreover, if the donor is under 80 years old and the beneficiary is an adult (article 790 G of the CGI).
Until €100,000 by donor without rights, for gifts made up to December 31, 2026 and allocated within 6 months (article 790 A bis of the CGI).
€15,932, then 35 % up to €24,430 and 45 % beyond (articles 777 and 779 of the CGI).
€7,967, then 55 %. Beyond the fourth degree and between non-related persons: 60 % after €1,594.
The direct line scale
After the initial shock, between parents and children.
| Taxable portion per child | Rate |
|---|---|
| Up to €8,072 | 5 % |
| From €8,072 to €12,109 | 10 % |
| From €12,109 to €15,932 | 15 % |
| From €15,932 to €552,324 | 20% |
| From €552,324 to €902,838 | 30 % |
| From €902,838 to €1,805,677 | 40 % |
| Above €1,805,677 | 45 % |
Article 777 of the CGI. The duties are due within 6 months of the death: without available liquid assets, the heirs sell.
Worked example
Giving away the bare ownership at age 66: €40,000 less in taxes.
A 66-year-old widow, two children, owner of an apartment in €500,000 that she rents out. She wants to keep the rent.
Upon death, each child would receive €250,000. After a €100,000 allowance, €150,000 would be taxed according to the applicable tax scale. €28,194 €56,388 per child in total.
Give the bare ownership today, while retaining the usufruct and the rental income. Between 61 and 70 years old, it's worth 60% of the property (article 669 of the CGI): €300,000, €150,000 per child.
€50,000 taxable per child: €8,194 each., €16,388 instead of €56,388, at constant value and excluding deed fees. Upon death, the usufruct expires without tax (article 1133 of the CGI).
The spouse and family
What the law decides if you don't decide.
Half of the inheritance for a child., two-thirds For two, three-quarters beyond (article 913 of the Civil Code). The remainder is free: this is the disposable portion.
It expands the rights of the spouse: the whole in usufruct, or one quarter in full ownership and three quarters in usufruct, or the disposable portion (article 1094-1 of the Civil Code).
Your spouse's children, if not adopted, are taxed at 60%. Assurance-vie, simple adoption, joint donation-partage: each tool has its own rules, to be chosen beforehand.
Frequently asked questions
What clients ask us.
When to start?
Early, for two reasons: the €100,000 allowance is renewed every 15 years (article 784 of the CGI), and bare ownership is cheaper when the donor is young — 50 % between 51 and 60 years old, 60 % between 61 and 70 years old (article 669 of the CGI).
Simple gift or shared gift?
A gift-partition freezes the value of the assets on the date of the deed: an asset that increases in value does not create any need to be accounted for among the children upon death (Article 1078 of the Civil Code). For several children, this is generally the best option.
Does assurance-vie form part of the estate?
No: the capital goes to the designated beneficiaries, outside of the estate (Article L. 132-12 of the Insurance Code), with €152,500 per beneficiary tax-free for payments made before age 70 (Article 990 I of the French General Tax Code). Only manifestly excessive premiums can be reclaimed.
Is a handwritten will valid?
Yes, if it is entirely handwritten, dated, and signed by you (Article 970 of the Civil Code). Deposit it with a notary, who will register it in the central registry of last wills and testaments: it will be found.
What happens if I can no longer manage my assets?
A future protection mandate designates in advance the person who will manage their assets (Article 477 of the Civil Code). Without it, the judge decides.
