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Can a British will help children avoid inheritance tax in France?

Can a British will help children avoid inheritance tax in France?

Can a British will help children avoid inheritance tax in France?

There are several options for addressing inheritance issues. The inheritance law is separate from inheritance tax. First, it is advisable to consult with an expert, such as an English lawyer familiar with both French and English legislation, to ensure that your wishes regarding your wills and your home in France are clear. There are several options, including drafting a single English will for all your assets or having an English will for English assets and a French will for French property. If you are a resident of England at the time of death, the standard rule is that English inheritance law applies. This offers greater flexibility regarding how you leave your estate, unlike French inheritance law, which establishes minimum shares for each child.

Inheritance tax is a separate issue.

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Let's assume that the value of the house has increased compared to what you paid for it. Even so, there is little risk of having to pay French inheritance tax, as French inheritance law provides an additional tax exemption of up to 100,000 euros for each child in the case of inheritance from parents. Therefore, if your wish is for this property to be divided among your five children, there is no risk that any of them will have to pay French inheritance tax.

However, it is worth bearing in mind that the relief is significantly lower when leaving property to step-children, so consult on this if necessary. On the basis that you are a UK resident, all of your property, including your home in France, will also be assessed for UK inheritance tax. In the event that your children have to pay any French inheritance tax, this can be offset against UK tax.

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