The Court Of Public Opinion

My wife and I are considering buying a property in France. We both have children from a previous marriage. What we should consider when buying?

There are two main points you should consider – succession and inheritance taxes. Many couples and expenses incurred because restructure their business so they can achieve their goals. Not related to the fulfillment of your dream property in France, without regard to those important to have sweptPoints soon.

How to buy the land between you dictate what will happen if one of you dies. Legal advice about your specific situation is recommended. Each case is different – it is a matter of "one size fits all".

The first step is to determine who you want, and have the properties of each death. You would need to watch this turn, considering how the rest of the foundation is to distribute to death. You should then consider whether youwill be implemented by law is limited in what you want.

French law will apply to the successor owner of the property to a death. protected heirs (known as reserves Héritiers Aires) have the legal rights of inheritance for a fraction of your French heritage, is governed by. protected heirs are usually your children. You may be surprised to know that the surviving spouse has limited protection under the law in French. In certain other circumstancesRelatives of inheritance may – but in your case, we are concerned about you, your wife and children.

There are two common forms of ownership of an absolute good – and tontine Indivision. The default location is equally Indivision. If you want to reflect unequal contributions to the act of purchase is important to raise with your legal advisor. If you own en Indivision, each of your deaths on French law dictates that in order to inherit their share ofProperties. For example, if you died before your wife, your children will have succession rights on sharing, resulting in joint ownership with your spouse. You have to wonder if this will be no problem for any of them reflect. Could there be a problem if the wife remarries, will sell the property to occupy permanently, or do not have a good relationship with your children? Furthermore, it is divorce or financial difficulties of the child have a negative impactImpact on your wife interested in the property?

Buying a property en tontine includes a system for automatic pension. This is a contractual agreement between you, when was the last surviving owner, the sole owner of your purchase must have. This means that if you die before your wife, your children's inheritance rights are suspended and effectively placed on hold to enter the exclusive property of your wife. You can only tontine clause when purchasing asYou must decide if this option is for you before buying.

It 'important to understand the consequences of property tontine – especially since it could lead to disinherit your children. Step-children have no legal right of succession to the French law in relation to a parent good pace so if the wife was to die before becoming the sole owner of the property, because you had a tontine clause to your wife your children diedaires are not subject Héritiers.

Your lawyer should be clear all the consequences of property tontine the circumstances in which an attack on the tontine clause could be done. For example, a dispute over the validity of the clause appears if you and your wife has no contributions equal to the purchase price, said to have used the clause tontine to a gift of one made to hide another.

Another possibility is a change of status Register propertyIndeed. You can use a system of community of property (known as universal Communaute), which has a similar effect to that clause tontine that there is a survivor's pension automatically, but also to all future acquired assets in France and what you intend to apply now to buy. On your death, your wife are the sole owners of the land would become. However, since your children from a previous relationship, are able to claim part of their assets that theyFrench law to be eligible had signed the marital property.

French inheritance law applies to the distribution of French property to death, because a property is in France. And 'possible to change the good of your movable property, and if you want to keep the distribution successor resident in England and Wales in (if the home), then English law would apply tothis activity – and let it spread to whoever you choose. They would buy the property through a corporate structure – for example, about a French SCI (Société Civile Immobilière) – each sign and money in exchange for a stake in the company, which then uses the money to buy land. The asset value of your property is an interest, avoid the right of succession, the application of French, but is not to avoid inheritance applies when the French law.

AnotherPossibility is the property in his name only – but you would need a careful thought to the consequences, give it, and if they can reach your goals in relation to the distribution of the death of the owner.

Once you are well prepared to follow the best option, you're right to think like the French inheritance tax.

French inheritance tax is calculated by reference to your beneficiaries and the tax is due, not from the beneficiariesfrom the crowd. Each receiver has an allowance of bandwidth equal to zero and the amount depends on the ratio of beneficiaries to the deceased person. Your children have to reduce to zero the volume of shares of € 156,974 (all figures here for 2010), while the step children inherit directly from you only a grant of € 1570. The tax rate for your children is calculated on a scale from 5% to 40%. A flat rate of 60% will apply to stepchildren. It 'important to understand howinheritance tax laws apply, as you may be able to structure your affairs to minimize the tax burden for your beneficiaries.

This is a complete exemption for transfers between spouses on death.

You should also think about your Wills at the time of purchase. If you do not have a deployment of a French property then your wife would be entitled only to a quarter share your interest in the property obtained. If you have a further increase will be covered andInterest it receives, giving her a choice from a range of options of inheritance, a being, a life to take part – a usufruit – more of your share. This can be particularly useful because they can give their exclusive use of the case, avoiding a 60% duty for the transfer step to step-parents and child – and could be useful to establish equal inheritance of property among children (for example. When you get to have two children.) It is essential to obtain advice on the prosand disadvantages usufruit one, though.

Although one in your home country may be recognized in France, can not ignore the application of French inheritance law, and in many cases it may be advantageous to be a French party.

Your counselor should focus on the laws of both countries in the world and travel guide in France, so that your business structure for your benefit.