French Wills and Brexit

Top Three French Law Tips: Wills and Brexit

1.     Can I still elect English Law after Brexit?

Yes.  You can still elect English law after Brexit, but need to do so in a carefully drafted Will with an accurately worded election of law clause. 

We often see Wills which are fine for use in the UK, but when interpreted under French law can cause 60% tax, cause uncertainty over who inherits, and need expensive restructuring and legal drafting.  Not many UK advisors understand the French inheritance tax problems and French legal consequences of a UK Will. 

The cost of drafting a specialist Will for you is a few hundred pounds. The cost of fixing errors is several thousand at best, and at worst it is 60% of your estate.

2.     Do I still pay French Inheritance tax if I choose English law?

If you live in the UK, then French inheritance tax applies to your French Property (houses and land) even if you elect English law.

If you live in France, French Inheritance tax applies to your worldwide assets even if you elect English law. 

3.     Do I pay Inheritance tax twice?

No, you don’t pay inheritance tax twice on the same inheritance.

The double taxation treaty of 21 June 1963 remains effective even after Brexit. 

If you are UK resident, then any inheritance tax you pay in France can be used to reduce the inheritance tax due in the UK. 

If you are French resident then any inheritance that you pay in the UK can be used to reduce the inheritance tax due in France.

 Please contact us if you would like to talk about any aspects of French Wills or inheritance tax.