Now we don't have to follow French Inheritance rules can we ditch the Assurance Vie?

Hi Steven; could you provide a link to this Connexion story?

Al I've been able to find is this new set of EU-recommandations. But there's nothing on the choice of a tax regime for an individual, it only gives recommendations to countries on how to avoid double taxations on heritages. And if that's the case it doesn't impact on the already existing ways of avoiding inheritance-taxes as it neither changes the legitimacy of a country to impose those taxes under their own regime nor the country's general laws on inheritances.

This was a result of Brussels IV rules drafted some years ago. The effect of this is not at all clear. In addition, the UK, Denmark and Ireland have opted out. There is a rare double tax treaty between the UK and France on Inheritance tax, and amongst other things, allows a UK sited immoveable asset [ eg house] to be left in a UK will to whoever you like, but still does not affect any tax due in UK or France.There can be a number of income tax and social charge advantages using A Vie to hold capital in one's lifetime, as well as being able to identify beneficiaires who then can receive assets without undue delay, increasing the tax exempt amount they would otherwise have had, and overcome succession law. Where these situations exist, the costs are far less than the tax you or your beneficiaries should otherwise pay, and a professional will be able to show this objectively. What someone else arranged financially and importantly, why, will have been for different reasons personal to them. Consulting with a regulated specialist will evaluate what tax and succession issues exist in your situation overall, and what opportunites that personal situation provides to mitigate them, and very important; keep up to date with changes and review regularly with you. It seems that most on this site are supportive of taking specialist advice which is good to see. DIY and collecting information piecemeal can be dangerous in my experience.

I'm widowed with no children and neither parent still living - my sister is my closest blood relative and yet under current French inheritance she does not not count, and would currently be liable for inheritance tax... thought this might solve that, but perhaps not!

@Rebecca. Isn't there a way around this by transferring the house into a company and leaving shares in the company to who you choose ? Time to talk to a specialist perhaps ?

Yes it is an absolute pain, we have a rather complicated family situation with estranged step children, not estranged step children etc and we would like to leave our property, which is our only asset, to whom we choose!

I wish we could ditch the Assurance Vie for mortgages. They too are expensive. If anyone knows a way, let me know. It would save us a small fortune. Thanks

The new European rules on cross border inheritance do not cover inheritance tax.

The article in the Connexion is somewhat inaccurate on a few points. The new European text is painstakingly (unnecessarily) long and it will take some time to digest and allow any constructive comments.

I don't think the proposed changes will avoid French inheritance tax charges

Steve