France’s New Inheritance Laws

Here is a summary of the new rules that the European Union (EU) instituted this past August. In particular, here is how the rules will apply to French citizens living in the United Kingdom (UK) and how English law will apply to the estates of English citizens living in France.

The new regulations will only apply to transfers made at death by succession. The basic rule for succession is that the law of the country where the deceased has his habitual residence at the time of his or her death applies to the decedent’s will, regardless of where the decedent estate is located at the time of his or her death. On the other hand, if a person’s property is more closely related to another country then the laws of that particular country will apply. A person can also choose which law will apply, but the person is limited to a choice between the country of their natural origin or their habitual residence. It is important to remember that these succession laws do not apply to tax matters. Tax matters, at least in France, are determined by national law. This law might apply to trusts if it deals with a succession issue. This could become problematic in France. 

There is also an issue that deals with time. For an explanation please visit the website that is provided below. These new regulations will apply to all member of the EU, with the exception being the United Kingdom (UK). The reason is because the UK did not adopt these regulations. A solicitor might want to take note of the following scenarios:

1. An English citizen dies as a resident of France and decides to have English law apply to his or her entire estate. Here, the administration of his estate will be governed by English law.
2. A French citizen dies in England and decides to have French law apply to his estate. Here, a decedent’s worldwide movable property and his French property will be governed by French law, while his or her English property will be administered by English law.
3. This could become more complicated if an English citizen dies resident in France and decides that French law should apply to the entire estate. Because the English citizen chose France (his or her habitual residence) his movable assets will be administered under French law. There is conflict of laws under this scenario because in England his assets will be governed by his or her domicile (England). This ambiguity was created because England has chose to not adopt the new regulations. It is not clear whether English law or French law should apply to his movable assets.
4. Finally, where a French citizen dies in England and chooses English law, the person’s French assets might be administered under English law instead of French law. 

See David Anderson & Nicole Gallop Mildon, The New Inheritance Laws, Complete France, Dec. 14, 2012.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.