You’ve undoubtedly heard of the droits de succession if you’re fortunate enough to own a property estate in France. However, the inheritance tax in France is well-known for its scope. Choosing the appropriate legal structures and taking early action are crucial for safeguarding your French assets in 2026. To understand the foundational rules that govern forced heirship and mandatory shares under French inheritance law, see our full guide on Laws of Succession in France. This blog looks at smart moves to reduce, or even potentially eliminate, the French succession.
Reduce Your Estate With Generosity
Reducing the size of your estate while you are still alive is the easiest way to lower your future tax bill. Generous lifetime gifts, also known as donations, are permitted in France and are renewed every 15 years.
At the moment, each parent can give up to €100,000 tax-free to each child every 15 years. Theoretically, a couple with two kids could pass on €400,000 every 15 years without paying any taxes. Under the same timeline, you can also give each grandchild €31,865. One of the best things you can do is to begin this process in your 50s or 60s.
The Assurance Vie
In 2026, Assurance Vie remains the best option for tax preparation. This is a tax-efficient investment wrapper in addition to life insurance. Any beneficiary you designate can receive up to €152,500 tax-free upon your death if you contribute to an Assurance Vie before turning 70. The standard inheritance allowances are entirely different from this. Better yet, the tax rate is frequently a flat 20% if the inheritance exceeds that sum, which is much lower than the top-tier 45% or 60% rates found elsewhere. For help legalising and translating foreign probate documents, you can explore our Apostille Services and Legalisation support.
Protect Your Partner
In France, the tax office considers your partner to be a stranger if you live together but are not married or in a civil partnership, meaning their inheritance will be subject to a harsh 60% tax rate. Engaging in a PACS (the French civil partnership) or getting married will solve this. In France, PACS partners and surviving spouses are entirely exempt from inheritance taxes. For couples, it is the most powerful legal protection available.
Démembremen
The division of property ownership, or démembrement, is a common tactic used by homeowners. While you keep the right to live in the house or collect rent for the remainder of your life, you can give your children bare ownership (Nue-propriété). The gift’s value decreases as you get older. The children automatically become the property’s complete owners upon your death, and they are exempt from paying any additional taxes. It’s a smooth transition that uses your allowances at a significant discount.
If you need help with French Probate, contact French Probate Matters on 020 8150 2010 or info@frenchprobatematters.com.
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