Non-French resident
A non-French resident is only concerned by a French succession in relation to real estate property situated on French territory. A French notaire has to be involved with the succession of real estate property due to the fact that the transfer of ownership must be recorded in an authentic deed which only a notaire based in France can draw up and register. To the exception of certain specific cases mentioned below, it will be necessary to draw up an ‘attestation immobilière’ which is a document recording who has inherited what in the property. This document must be signed with the notaire by the inheritor(s). Unless otherwise stated by either a will or particular legal provisions, the inheritor(s) administer and safeguard the property from the date of the owner’s death, but they can only sell once the ‘attestation immobilière’ has been signed.
French resident
The succession of a person who deceased domiciled in France for inheritance purposes, which in this sense of French Private International Law equates to a notion very similar to residency, will incorporate real estate property situated in France as well as moveable assets and chattels situated in France and elsewhere.
Therefore, the law applicable to the succession of a French resident UK citizen would be as follows:
- Main residence situated in the Gers as well as its furniture: French law governs the succession
- Bank accounts and car situated in France: French law
- Bank accounts, shares and investments based in the UK and Jersey: French law
Rented flat in London, U.K.: English law governs the succession of the flat
As a result, it will be necessary for the inheritor(s) to sign an ‘attestation immobilière’ in relation to the main residence situated in France. An inventory (‘inventaire’) would normally be drawn up in respect of the furniture, usually by a judicial officer known as a ‘huissier’. For the bank accounts in France, the notaire would usually obtain information about these directly from the banks and the inheritor(s) would pass on information pertaining to the car.
As for bank accounts, shares and investments outside of France, it will be necessary to provide the notaire with valuations for the date of death. One would normally contact the individual banks in question to obtain written details of the capital plus any interest owning upon that date. Information about shares and other investments can be obtained directly or via a title research company. The notaire would draw up a separate document to be signed by the inheritor(s) with regards to the general principles of who is entitled to what proportion of the estate, known as an ‘acte de notoriété’. It would then be necessary to proceed through probate procedures in Jersey and the UK on the basis of this French document. It should be noted that formal translations will be required into English.
If the assets are to be divided out between the inheritors, an ‘acte de partage’ will be drawn up with the notaire specifying who is to receive what share of particular assets. Values will be attributed on the basis of who is entitled to what as stated in the aforementioned ‘acte de notoriété’, and the ‘attestation immobilière’ if the sale proceeds of the house are to be divided or the house is to be attributed to a particular beneficiary.
Regime of universal community
If a husband and wife have adopted the regime of universal community, the whole aforementioned succession process will be avoided. The notaire will draw up an ‘attestation immobilière’ with regards to the real estate property and this is effectively all that is required.
Tontine Clause
Similarly, if there is a tontine clause in relation to the co-owners, no succession is undertaken when one of them passes away – the surviving co-owner automatically becomes the owner of the entire property.
Inheritance Tax
Inheritance tax is payable within one year for a non-French resident and within six months for a French resident. The tax due is declared on a form known as a ‘déclaration de succession’ which is usually established with the notaire. It is not obligatory for a notaire based in France to be involved with this tax form but he or she almost always is, particularly given the requirement for there to be an ‘attestation immobilière’ in relation to real property. The tax must be paid at the same time as the form is submitted. If payment is submitted after the above deadlines, penalties and interest will be due.
Wills
If a non-French resident left a will, for example in the UK, it may still be applicable to the French property if it is widely drafted. It will therefore be necessary to provide the will to the notaire and it will normally have to be registered at the local Court in France. Of course, an official translation of an English will into French will be required. If there is a French will specifically relating to the property then matters are evidently simplified (plus it is much more likely that the French will can have its full effect under French law).
For a French resident, similar considerations will apply as aforementioned, although the risk of potential problems in relation to the application of a non-French will is greater. In our example, French law applies to nearly all of the deceased’s estate except for the London flat. If the deceased leaves an English will which relates to all assets and property, it will be fully applicable for the London flat. However, it could cause difficulties in respect of all other assets and property depending upon what it contains and whether a conflict arises with French law.
© Headdon Consulting
Headdon Consulting Sarl
Le Moulié, 32190 Rozès (Gers), France
Tel: 0033-(0)5-62.68.00.81
Fax: 0033-(0)5-62.68.01.49
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