Inheritance Tax for Non Residents

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Factseeker

1464980225

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Hi,I am English my wife is a French lady.We have been put off returning to living and buying a property in France - which we would very much like to do -  due to apparent considerable problems ref IHT and the onerous nature of them in our situation.Our 3 daughters are all grown and living at various points of the compass worldwide - so non French resident.Although they all grew up together - the 2 elder girls are from a first marriage 3O odd years ago - in other words my wife is not their legal mother ( although they consider her that ) or for that matter not their relative either.The main problem circles around the fact that should I die before my wife then the 2 eldest daughters are not in any way associated with my wife from the IHT perspective.This represents no problem whatsoever if we are UK based..I have tried for a considerable time to get to the 'real' facts on a particular point concerning IHT in France.1. If none of our daughters are resident in France - would they be         subject of French IHT should both my wife and I die??   Or is their tax 'responsibility' for any IHT in their country of residence? I ask this as in France it seems to be the recipient of any Inheritance who is taxed and not as with the UK the 'Estate' of the deceased.A French Notaire recently seemed to indicate that any 'Inheritance' was nothing to do with the French State if a non resident.I find that very hard to believe.I could sure do with advice on this right now as otherwise we buy in UK.Hope to hear soonest if anyone has met this situation.Best Rgds.Factseeker

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Replies

Fish24 1465076591

It is not possible to give advice nor solutions on such a complex subject and any future changes which might take place.

You may like to read a short, succinte newspaper article concerning France and the EU and warnings of IHT but the only way you can find out more is to get advice for specialised, personal advice before moving to France as what suits one may not suit another and the possible complications of Brussels IV are to be read and understood:-

https://www.frenchentree.com/french-property/french-tax/new-eu-succession-law-and-its-implications-on-inheritance-tax/

Bobandchris 1465487856

My husband died here in France at the end of May.Luckily we made English wills a few months before,so my bank account was not frozen after a notice was sent from our Notaire.I will have to pay tax on all the inheritance I get from my husband although it was all in joint names.I now also have to appoint a solicitor in UK as we owned jointly a small commercial property.My husband had a vehicle registered in his name in France which I can't sell to help cover my costs until UK probate is done which could take more than 8 weeks and will have to be translated from French to English by an authorised translater.In the meantime bills are coming in,the latest from thr Notaire for 300 euros to keep our wills in her office.Her bill will be at least 3,000 euros,plus the funeral costs.My advice stay in UK and just have some lovely holidays here.Christine Goodhew

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