FRELA provides tax advisory services to assist you in implementing your estate planning.

Are you planning to purchase a high-end real estate property?

FRELA can assist you in structuring your estate planning.

Given the complexity of French legal and tax regulations, FRELA offers a comprehensive estate planning service dedicated to your acquisitions or investments in France.

Entrust your estate planning for the acquisition of high-end real estate to one of our legal representatives. They will provide experienced and knowledgeable advice to ensure the legal security of your real estate acquisitions in France and optimize your tax situation, as well as that of your heirs

We provide you with fiscal legal assistance in estate planning for your real estate assets in France in several ways:

Analysis of the individual tax situation of the parties involved in the donation or inheritance: FRELA’s legal representatives assist you in analyzing the tax situation of individuals, shareholders, entrepreneurs, and directors involved in the process.

Legal and tax analysis of the real estate assets to be transmitted: FRELA lawyers conduct a legal and tax analysis of the properties for which you plan to make a donation or succession.

Analysis of the acquisition structure of the real estate assets for the beneficiaries of your donations and inheritance: FRELA real estate lawyers advise you on the most appropriate acquisition structure to minimize the tax burden of the operation. This may involve the creation of a company, partnership, or other forms of entities to carry out the acquisition, inheritance, or donation.

Tax analysis of the succession transmission: FRELA’s real estate lawyers conduct a tax analysis of the transaction to determine the tax implications of the donation or inheritance. This analysis may include examining the tax impact on the entities involved, the tax consequences of the acquisition, and ways to minimize tax costs associated with the transaction, donation, or inheritance.

Tax planning for donations and successions: We assist you in tax planning by proposing strategies to reduce the tax burden of the operation, such as lifetime donations, the use of usufruct and bare ownership, capital gains tax deferral, reduction of corporate tax, and more.

Transfer of tax residency during a donation or inheritance of real estate in France: When advantageous and depending on the circumstances, we evaluate the best tax residency for you and the beneficiaries of your donations and legacies, and we assist you in formalizing, regularizing, and declaring your situation to the relevant tax authorities.

Implementation of transmission mechanisms: FRELA lawyers assist you in setting up and optimizing your estate transmission and donation mechanisms.

Advice on the creation and implementation of entities dedicated to estate transmission, donations, and successions: We provide guidance on the establishment of specific French or foreign entities such as REIT(Real Estate Investment Trust), foundations, co-ownership, and trusts to meet your goals in organizing your assets and those of your descendants.

Assistance in handling tax disputes in case of litigation with the tax authorities during donations and successions. FRELA helps you negotiate agreements with the tax authorities and draft international tax conventions for real estate properties located abroad.

French Lawyer Estate Planning: A Path to Protecting and Transferring Wealth

Estate planning is a critical process for individuals seeking to protect their assets, ensure a smooth transfer of wealth, and provide for loved ones after their passing. In France, the legal framework governing estate planning is both comprehensive and nuanced, rooted in the French Civil Code. The process involves complex rules concerning inheritance, taxation, and property rights, which makes the assistance of a French lawyer indispensable. These professionals possess the expertise needed to navigate the intricacies of French law, tailoring estate plans to the unique needs of their clients while ensuring compliance with legal obligations.

A French lawyer’s role in estate planning begins with understanding the client’s objectives and assessing their financial and familial situation. Estate planning in France must account for the forced heirship principle, a cornerstone of French inheritance law. This principle reserves a portion of an estate for the deceased’s children or other protected heirs, limiting the testator’s ability to freely dispose of their assets. For instance, if an individual has three children, French law requires that at least three-quarters of the estate be reserved for them collectively, with the remainder being freely disposable. Lawyers play a crucial role in advising clients on how to structure their estate plans within these constraints while achieving their goals.

An essential part of estate planning involves the drafting of a will. While French inheritance law automatically determines the distribution of an estate if no will exists, a will allows an individual to exercise some control over the allocation of their assets within the legal framework. French lawyers ensure that wills are valid, clear, and enforceable, avoiding ambiguities that could lead to disputes among heirs. They also guide clients on how to use the available quotité disponible—the portion of the estate that is not subject to forced heirship rules—for bequests to other beneficiaries or charitable causes.

For individuals with cross-border ties, estate planning becomes even more complex. French law applies to immovable property located in France, such as real estate, regardless of the owner’s nationality or residence. However, movable property, like bank accounts or shares, is typically governed by the law of the deceased’s last habitual residence. French lawyers assist international clients in reconciling these conflicts of laws, often by invoking the European Union’s Succession Regulation (commonly known as Brussels IV). This regulation allows individuals to elect the law of their nationality to govern their entire estate, offering greater flexibility for those wishing to avoid French forced heirship rules.

Taxation is another critical aspect of estate planning in France. French inheritance tax rates can be steep, with rates varying based on the relationship between the deceased and the beneficiary. For direct descendants, the rates range from 5% to 45%, after applying an allowance of €100,000 per child. For more distant relatives or unrelated individuals, the rates can reach as high as 60%. French lawyers help clients structure their estates to minimize tax liabilities, often through the strategic use of exemptions, allowances, and legal structures such as sociétés civiles immobilières (SCI). These private real estate companies allow families to hold and transfer property in a tax-efficient manner while maintaining control over the asset.

Another tool commonly employed in estate planning is the donation-partage. This legal instrument enables an individual to distribute their assets among heirs during their lifetime, ensuring an equitable division and reducing the likelihood of disputes. French lawyers facilitate the execution of donation-partage agreements, ensuring compliance with legal requirements and maximizing tax benefits. Donations made more than fifteen years before the donor’s death are generally excluded from the estate’s valuation for inheritance tax purposes, providing an opportunity to reduce the taxable estate.

For married couples, estate planning often involves the optimization of matrimonial property regimes. In France, couples can choose between various regimes, such as communauté universelle (universal community), séparation de biens (separation of property), or participation aux acquêts (participation in acquisitions). French lawyers help couples select or modify their matrimonial regime to align with their estate planning objectives, often through notarial agreements.

The French legal system also provides mechanisms to protect vulnerable individuals, such as minors or adults with disabilities. Estate planning may include provisions for guardianships, trusts, or other protective arrangements to ensure the financial security of these individuals. French lawyers play a pivotal role in designing and implementing such measures, balancing legal safeguards with the client’s intentions.

For business owners, estate planning often involves succession strategies to ensure the continuity of the enterprise. French lawyers advise on the transfer of business shares, leveraging tools like family holding companies or life insurance policies to facilitate a smooth transition. They also ensure compliance with French commercial and tax laws, particularly in cases involving significant business assets.

Estate planning is not a static process; it requires periodic review and adjustment to account for changes in personal circumstances, family dynamics, or tax laws. French lawyers provide ongoing counsel, helping clients update their plans to reflect new realities. This proactive approach ensures that estate plans remain effective and aligned with the client’s wishes.

One of the most significant challenges in estate planning is preventing disputes among heirs. French lawyers act as mediators, anticipating potential conflicts and addressing them through clear, legally binding agreements. By fostering transparency and communication, they help preserve family harmony while safeguarding the client’s legacy.

Contact us and share your project with us