We already have a tontine for the property we own together - it doesn't get over the 60% tax issue for "unrelated" heirs. (Yes, I know nephews are related but the allowance before inheritance tax kicks in is minuscule) Plus you can only do it on the day of purchase, not retrospectively.
Sounds pretty much like ourselves Emily, only it was at my instigation - having foolishly put a property paid for mostly by myself in universal community with my (as I discovered) philandering ex-husband I wanted to protect my new husband in the event of divorce. It is the crazy French system that forces you to think of divorce or death before you even get married! But it has to be done I'm afraid.
We too have no children and that is causing headaches in itself. We both want to leave our property to the other - but what happens on the death of the second one? Property would pass to the heirs of the last to die - so theoretically my parents' estate could pass to my husband's nieces. I can't force my husband to will it to my nephews. And then there's the 60% inheritance tax for anyone who inherits too. It would be so unfair for 60% of the money my parents worked so hard for all their lives to end up going to the French state.
I think maybe usufruit (usufruct or life interest) may be the way to go, or asking my parents to miss me out and pass "my" inheritance directly to my nephews, but then what happens if one day I reaqlly could do with the money?
It is giving me sleepless nights already and I'm only in my 40's lol
My friends recently got married here on the advice of their notaire. They have a variety of shared/not shared property interests but no kids. After explaining they had no desire to be married, they just wanted to ensure the smooth transfer of property in the event of their deaths, be it PACS/SCI or so on - the notaire advised them the only real option was marriage.
Personally, I'm with the fossil above but everyone is entitled to their own beliefs.
Almost correct Steve, but it's currently 60% inheritance tax. If you are married, it is currently 0% on any inheritance from your spouse.
This is such a complicated issue, especially as children from previous relationships are involved. You really need to seek the advice of a notaire.
The short answer is that you are in a stronger position if you are married, but it is the children who are in the strongest position of all - for the moment.
If you are resident here in France, but from another EU country, the law is currently being amended to allow you to dispose of your property under the rules of your country of birth rather than under French law. So, if your country of birth allows you to leave all your property to the cats' home, then, regardless of how many children you may have, you should be allowed to do so. From 2015 onwards, if it goes through as drafted.
I should add that the tax due on the inheritance will be subject to French legislation - so still 60% if you are unmarried and wish to leave it to your partner.
In my opinion you shouldn't need to ask the question. Sorry- perhaps I am a fossil. Sure it's a committment. It's meant to be! In the UK professionals can make themeselves Limited Liability Partnerships (LLPs). I am if not an expert an experienced person. Marrids three times and quite honestly don't wish I had't done any of them. First divorce after 22 years but stll a good relationship anmd two fine sons, second after a few years a great marriage, no children, but serious illness and eventually death of my wife, third a much younger womam, 39 years my junior and a lovely first daughter. I never met her but my grandmother was married for, possibly five, times! As the Pope would say I'm a great supporter of marriage and in fact I rather dislike "partnerships" which always seem to missing that little something. I await the usual torrent of abuse....................
Didnt think the PAC think worked for inheritance tax - does it? Thought that is why there is so much hoo har about gay marriage... ie they have to be married to avoid the inheritance tax???
Yes, one's marital/PACsed status makes a huge difference to the inheritance laws and taxes to which the survivor becomes liable. Each situation is different, so I would advise going to a notaire. My understanding is that notaires give advice free, (but I was also cautioned about possible bias if the advice is given without making a charge.)
The thing that worries me most about not being married or PAC'sd is inhertitance tax. If my understanding is correct, if I clog-pop tomorrow, my OH will pay 50%+ tax on my share of the properties that we own.