Changes to the French Laws of Succession will impact on British Ex-pats living in France

Over recent years increasingly British citizens have chosen to acquire properties in European countries.  France, Spain, Italy and Portugal being extremely popular destinations. Individuals that choose to relocate, living in their overseas property should remember that they are living in a different jurisdiction and should make sure that they understand how the laws in their country of choice may affect them.

From 1 November 2021, the French laws of succession have changed, British citizens living in France in a property owned by them may have to revise their estate planning to reflect these changes.  In accordance with many European jurisdictions governed by Civil Law the principle of forced heirship applies. This means that legally a designated fixed proportion of the testator’s assets will pass automatically to their spouse, children or parents, regardless of the testator’s wishes and cannot be overridden. 

Previously, however, the EU Succession Regulation of 2015 enables foreign national testators to choose the law of their own nationality over that of their country of residence, allowing British citizens to leave their assets under a will governed by the laws of England and Wales. The new French law enacted in November may disrupt the pre-existing wills made by British citizens under the EU Succession Regulation 2015 that were drafted with the view of overcoming the strict laws of succession in France.

The new law will impact on British citizens and their children that reside permanently in France or any other EU State at the time of the testator's death.  In those circumstances, if the testator has made a will under the jurisdiction of England and Wales law in accordance with the EU Succession Regulation 2015, because there are no forced heirship provisions for the children of the testator, the new law will entitle the children to claim recompense with regard to the appropriate portion of the testator’s French assets. This raises a number of issues, if the testator’s children exercise their right to claim against their parent’s estate, they will be entitled to a portion of the assets within a French property to the value of designated by the French laws of succession – this will mean that an only child would be entitled to 50 per cent of the value of the property.  If an adult child chooses to renounce their entitlement this could have repercussions under England and Wales inheritance law.

Giambrone & Partners experienced lawyers in the inheritance, wills and trusts team can suggest a range of options, depending on the individual circumstances of each family, to mitigate the new law and as far as possible allow an individual to benefit his chosen beneficiaries in the manner they wish to. There are several mechanisms that can be considered, however it is imperative to act as soon as possible if you would like to vary your will and dispose of your assets in the way you want to.

Our expert lawyers recognise that cross-border estate planning is complicated, and structuring global assets tax efficiently to maximise the benefits for your beneficiaries, particularly when the circumstances of your beneficiaries continue to vary in different ways, such as reaching the age of majority, when marrying or divorcing and if they predecease you, requires considerable time and attention.

For more information on the new French laws of succession and how to revise your will please click here.