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What happens when an Englishman who owns property in France dies? - French entry

What happens when an Englishman who owns property in France dies? - French entry

What happens when an Englishman who owns property in France dies? - French entry

Charlotte MacDonald is a solicitor in Stone King's international and cross-border legal team. As part of a new 12-part series, Charlotte will answer the legal and practical questions her clients often ask about buying or selling property in France, French inheritance law and how inheritance and capital gains tax are regulated between the UK and France.

What happens when an English person dies owning a property in France.

There's a scenario: Mabel has recently died. Mabel was English but retired to France a few years ago. She had a house in France, an apartment in England and bank accounts in both the UK and France. In her will.Mabel appoints her daughters, Joanna and Katie, as her executors of her will and leaves them all of her estate equally.

Mabel's daughters need advice on what to do next.

Inheritance administration in France.

Mabel's daughters need to appoint a notaire (a French lawyer) to deal with the inheritance. The role of executor of a will is not recognized in France in the same way as it is in England, and usually the heirs, or as they are usually called in France, legatees or legatees, are expected to sign the relevant inheritance documents.

Roughly speaking, the work of a notary can be divided into four stages. Some of these stages may occur simultaneously.

Definition

The daughters must provide the notary with Mabel's will and the personal documents of the heirs (in this case, the heirs are Joanna and Katie), including passports, birth/death certificates, and marriage/divorce certificates. The notary will prepare a deed of establishment of inheritance that officially recognizes the daughters as heirs.

Assets and liabilities

The daughters must provide documentation to prove Mabel's assets (bank statements, real estate documents, life insurance, etc. D.) and liabilities (mortgage documents, utility payments, funeral expenses, etc.). Д.). The notary will then create a schedule of assets and liabilities based on the information provided. In some casesThe notary will perform additional steps such as verifying the existence of the property in the Real Estate Registry and preparing an inventory for proper valuation of furniture and personal belongings, etc.

The notary will then provide the heirs with a report of how much Mabel's assets were worth at the time of her death. The heirs may decide not to inherit at this stage (for example, if the amount of Mabel's debts exceeded the value of her assets).

< taxes.

The notary will also prepare an inheritance declaration (French inheritance tax return) for Joanna and Cathy to sign, and help organize the payment of the inheritance tax.

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This must be completed within 6 months if the person has died in France (this increases to 12 months if the deceased has diedoutside France). Unlike in the UK, daughters (rather than the inheritance) are responsible for paying inheritance tax and late payment penalties.

Distribution of inheritance

The notary will draw up a deed to transfer Mabel's real estate - a deed to the estate. Finally, the notary will prepare a deed of division of inheritance (this is not always required) and distribute Mabel's assets to her daughters.

French inheritance law and procedure: some practical points

How long will the process take?

The inheritance process in France usually takes between 6 and 12 months. Things can take longer if Mabel's condition is particularly complex or if daughters or others are contesting the will orinheritance.

How much will it cost?

The notary's fees are set by the French state and are calculated as a percentage of the inheritance. At the start of the process, the notary will provide an estimate of these fees, although as the calculation is based on the value of the assets, this cannot be confirmed until the value of the assets is known. Notaries will sometimes charge an additional amount if the case is complex.

Daughters live in the UK, will they have to travel to France?

No, a notary can draw up a special power of attorney (authority) allowing another person to sign relevant documents on behalf of the daughters. This will usually be an employee in the notary's office.

Inheritance administration in theUK

Since Mabel owned an apartment and bank accounts in the UK, Mabel's daughters will also need to obtain inheritance clearance and file an inheritance tax return in the UK.

It is wise to seek the assistance of an experienced international and cross-border solicitor to help them with this, as the solicitor will be able to advise the daughters on the bilateral tax treaty between the UK and France and will be familiar with both jurisdictions. The lawyer will also be able to help the notary to comply with the relevant English legal rules.

At Stone King we regularly work for people like Joanna and Katie, managing UK-French inheritances. We work with a notary public to.Ensure that British and French estates are properly managed.

For further information, please contact Stone King's international and cross-border team; Charlotte MacDonald, Dan Harris, Raquel Ugalde and Emma Seaton by calling +44 (0) 1225 337599 or emailing: [email protected]

This article was written by Charlotte Macdonald and trainee solicitor Bryony Anning. Your email address will not be published. Required fields are marked *

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