The French Civil Code has two important legal concepts known as the “réserve” and “quotité disponible”.
Roughly speaking, the “réserve” (essentially for the children) is a part of the deceased’s estate which he/she is not entitled to freely dispose of and the “quotité disponible” is the part of the estate which he/she is free to dispose of.
It is however possible to find an appropriate way that would more or less freely match a testator’s wishes and our real property team would be please to assist you with this.
Will and European regulations
The choice of the applicable law must however be made in an explicit manner in a declaration which takes the form of a testamentary or similar deed (e.g. a Will).
The formal validity of the deed in question is though governed by the law of the member state chosen by the testator.
The new European regulation relates solely to civil law issues and for inheritance tax purposes, French tax would still be fully applicable.
Matrimonial property settlement agreement
- on the one hand, the purchasers have joint use, throughout their life, of the property,
- on the other hand, under the « clause aléatoire » the first of them to die will be considered as never having had a right to the ownership of this property, which will belong entirely to the
survivor in whom the said property will be deemed to have always vested since the date of the present purchase
For further information on inheritance planning query please click here.