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Russell Cooke Solicitors

 
 

The succession law affecting owners of properties in France is going to change!

The new Succession Regulation1  (“the Regulation”) which became law last year will become fully effective on 17th August 2015.  It is designed to accelerate the settlement of successions and reduce costs. The full implications for British owners of properties in France or those resident in France on a permanent basis, are still the subject of some conjecture.

The United Kingdom has of course opted out of the new law.  Advisers in England and Wales are currently placed in a complex position as the exact effect in practice of the UK decision to opt out of the Regulation remains unclear.

The hot topic of debate at this juncture however has to be the extent to which the international public order exception contained in Article 35 of the Regulation will be claimed by France in priority over the law of the nationality chosen by (professio juris). 

Dawn Alderson, a partner and avocat at the Bordeaux Bar and head of the French team at Russell-Cooke has commented, “We believe that there has not been enough coverage in the Press of the effect of the new Regulation in England and Wales. I think that it is sometimes assumed that it can safely be ignored here as the United Kingdom has opted out, but in fact for owners of property in France there will be significant changes. Our advice to anyone concerned is that they should contact us so that we can assist and review the position.

1 (EU) 650/12 of the European Parliament and of the Council

 

French wealth tax (ISF) - Do not miss the deadline!

The deadline for declaring and paying your ISF this year is 15 July for EU residents (15 June for French residents).

ISF applies each year to individuals whose net French wealth is above €1,300,000 on 1st January at a maximum rate of 1.5 percent.

Non-residents are only taxed on their French situated assets (financial assets excluded) and this also applies to assets held via a trust since 1st January 2012.2

If you happen to be acting for the Settlor or the beneficiary of a trust holding French assets or the trustee of a trust including a Settlor or a beneficiary resident of France or holding French assets, this may apply to you.

Patrick Delas, solicitor and avocat leads the French tax team that can assist with the assessment of your wealth tax exposure and compliance with your reporting obligations.

2 New Art. 885 G CGI introduced by Art. 14 LFR 2011

 

Inheritance disputes and French property

We have a specialist team created specifically in response to the increased number of enquiries concerning inheritance disputes involving French assets and property. Claims are now regularly occurring where a French property is involved. Not only under English law e.g. Inheritance (Provision for Family and Dependants) Act 1975 claims but also directly in France by disappointed beneficiaries, often the children of the deceased. Rights for children under French law are becoming generally more widely known and it is not unusual that the family will have researched the French forced heirship rules in detail.

We would be very pleased to assist in providing assistance or guidance where appropriate.  We can also advise with the drafting of appropriate testamentary dispositions designed to take account of the French rules applicable so that in the event of a death the administration can proceed with the minimum of delay and expense.

 

Russell-Cooke launches French property law website

Frenchpropertylaw.co.uk is dedicated to providing a comprehensive resource and cross-cultural approach for those looking to buy property or having property interests in France. The new website offers an opportunity for visitors to meet the team and learn about our specialist expertise across a range of areas within the firm and France. Click here to view.

 

Dawn Alderson: Dawn.Alderson@russell-cooke.co.uk   Tel: +44 (0)20 8934 6373

Patrick Delas: Patrick.Delas@russell-cooke.co.uk   Tel: +44 (0)20 8394 6387

www.frenchpropertylaw.co.uk / www.russell-cooke.co.uk

 

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