I’ve Been Appointed as an Executor and the Deceased Owned Assets in France, What Should I Do?

The role of an executor is not recognised in France in the same way that it is in England. Usually, the beneficiaries, or as they are more commonly referred to in France, the ‘heirs’, are expected to sign the French succession paperwork. By contrast, in the UK, it is generally only the executors who must sign the paperwork.

Harriet’s executors will need to appoint a notaire (a French lawyer) to help deal with the succession.

Broadly speaking, the notaire’s work takes place in four stages.

Identify the beneficiaries

Louise and Olivia will need to provide the notaire with Harriet’s Will and their identity documents (as they are beneficiaries), including their passports, birth certificates, marriage and divorce certificates, if applicable.

The notaire will draft the acte de notoriété , which will set out the applicable law regarding the succession of Harriet’s estate. Whether English or French law is applicable will depend on the contents of Harriet’s will. The acte de notoriété will also establish the identity of Harriet’s beneficiaries and the proportion of her estate, which they are entitled to inherit.

Assets and liabilities

Louise and Olivia will need to provide the notaire with documentation demonstrating Harriet’s assets (bank statements, property deeds, life insurance policies etc.) and any liabilities (mortgage deeds, household bills, funeral expenses, etc). The notaire will then produce a schedule of assets and liabilities.

In certain situations, the notaire will carry out additional steps such as checking for property at the Land Registry and preparing l’inventaire to provide a correct valuation of Harriet’s furniture and personal belongings in France. The notaire will then provide Louise and Olivia with a statement of how much Harriet’s assets were worth at the time of her death. At this stage, the beneficiaries can decide whether or not they want to inherit Harriet’s French estate. They may prefer not to inherit if Harriet’s debts are worth more than her assets.

French Tax

The notaire will also prepare the déclaration de succession, which is the French inheritance tax return. English law may apply to the succession of Harriet’s estate, depending on the contents of her Will. But as Harriet was habitually resident in France at the time of her death, French inheritance tax will apply to her assets.

French inheritance tax works very differently to English inheritance tax. Under the French system, it is personal to each beneficiary inheriting from Harriet’s estate. The tax is calculated on the value of their inheritance and how close the beneficiary is related in terms of bloodline to the deceased.

Louise and Olivia are not blood relatives of Harriet’s, and they therefore benefit only from a small tax-free allowance of €1,594 each, and whatever they inherit above this will be taxed at a flat rate of 60%.

The notaire will help arrange the payment of the inheritance tax due. The déclaration de succession must be completed within six months if Harriet died in France (this is extended for 12 months if she died outside France). Louise and Olivia, in their role as the heirs, are liable to pay French inheritance tax and any penalties for late payment.

Distribution of the estate

The notaire will prepare a deed to transfer Harriet’s house in France to Louise and Olivia – known as the attestation l’immobilière.

How long is this process?
The succession process in France often takes around 6 to 12 months. Things could take longer if Harriet’s estate is particularly complex.

How much will this cost?
The Notaire’s fees are set by the French state and are calculated as a percentage of the estate. The notaire will provide an estimate of these fees at the outset of the matter. Sometimes notaires will charge an additional amount if the matter is complex.

Louise and Olivia live in the UK, will they have to travel to France?
No – the notaire can draft a specific power of attorney (known as a procuration) which will authorise another person to sign any relevant documents on their behalf, usually an employee in the notaire’s office.

As Harriet owned a flat and bank accounts in the UK, her executors Louise and Olivia will need to obtain a grant of probate and submit a UK inheritance tax return. If inheritance tax is payable in both France and the UK then, under the 1963 Double Taxation Treaty, Louise and Olivia can apply for double tax relief.

It is a good idea to instruct an experienced international and cross-border solicitor to assist with this, as the solicitor will be able to advise Louise and Olivia on the double taxation treaty between the UK and France and will be familiar with both jurisdictions. The solicitor will also be able to assist the notaire with any relevant English law points.

At Stone King, we regularly work for people like Louise and Olivia and help them ensure that the UK and French estates are administered correctly.