It is important to plan your French succession early

France has some of the highest inheritance tax rates in Europe — up to 60% for non-related beneficiaries. However, many tax exemptions are available, and estate planning with professionals can greatly reduce French inheritance tax.

British couples will often only own a holiday home in France as tenants in common. If they wish to leave the property to their children upon their second death, they can gift them the bare ownership of the property during their lifetime while retaining the right to use it (the usufruit).

Depending on the property's value and the parents' age when the gift is made, no gift tax may be payable when the children receive it, and no inheritance tax will be payable when the children receive the full ownership of the property. 

 If you would like any advice on succession planning across French assets, we have a dedicated Cross-Border team with French expertise who are on hand to help. Please get in touch today.