Estates and private wealth
International estates, divorces raising wealth issues and legal assistance to families, working with the notary in charge of the file.
France
An estate or a divorce becomes complex when assets are located abroad, held through companies or invested in contracts, or when several laws may apply.
We work with the notary (notaire) in charge of the file and, as needed, with accounting professionals, property valuers and correspondent lawyers abroad. We look for an amicable solution first.
What we do
Structuring and passing on family wealth
- Legal and tax advice on the organisation of a family’s assets, in France and abroad.
- Life insurance and capitalisation contracts in estate planning: choice of contract, drafting of the , non-resident policyholders, moving abroad or to France.Beneficiary clauseThe provision that names the person or persons who will receive the capital on the death of the insured person.
- Legal and tax audit of life insurance and capitalisation contracts intended for private wealth clients.
- Planning the succession: gifts, marriage contract, will, together with the family’s notary.
Settling complex and international estates
- Tracing assets abroad (movable and immovable property, bank accounts, life insurance contracts, foundations, trusts), in particular in Switzerland, Luxembourg and other European Union States, with correspondent lawyers.
- Realising assets in France or abroad to pay inheritance tax: sales of securities or buildings, auctions, surrenders of life insurance contracts in cash or in securities.
- Tax: valuation of assets, inheritance tax return, dealings with the tax authorities, instalment or deferred payment of the tax, settlement, payment in kind with works of art (dation en paiement).
- Administration of the estate: appointment of an estate administrator (mandataire successoral) or an ad hoc administrator, relations between heirs.
- Negotiation, settlement and amicable resolution between successors in title.
- Family office: legal assistance to families after an inheritance or a division of assets, and legal and tax advice on the organisation of their wealth.
Estate litigation
- Validity and interpretation of wills.
- Effects of the marriage contract (clause de préciput, which lets the surviving spouse take certain assets before the division) and of gifts.
- Proceedings in France and abroad: setting aside a will, investigative measures concerning assets located abroad, conflicts of laws and international conventions.
- Urgent measures: attachments, official findings (constats), enforcement proceedings.
- Concealment of estate assets (recel successoral) and, where appropriate, criminal complaints for abuse of a vulnerable person (abus de faiblesse) or misappropriation of assets.
Divorce and settlement of the matrimonial property regime
- Settlement of the matrimonial property regime with the appointed notary: statement of account (état liquidatif), valuation of assets, compensation between the community and the spouses (récompenses), occupation indemnities, claims between spouses.
- Interpretation of the marriage contract, contribution to household expenses (contribution aux charges du mariage), division of property, through negotiation or in court.
- Tax treatment of the settlement and of the compensatory payment (prestation compensatoire); what happens to gifts and life insurance contracts.
- Criminal aspects: misappropriation of assets, breach of trust (abus de confiance).
Frequently asked questions
Does a life insurance contract form part of the estate?
In principle, no: the capital paid to the named beneficiary does not form part of the insured’s estate (Article L. 132-12 of the Code des assurances, the French Insurance Code). The heirs may, however, obtain the return to the estate (rapport) or the reduction of premiums that were manifestly excessive in view of the policyholder’s means (Article L. 132-13). The wording of the beneficiary clause and the taxation of death benefits also weigh on the settlement of the estate.
Which law applies to an estate with assets in Luxembourg or Switzerland?
For deaths on or after 17 August 2015, the EU Succession Regulation in principle subjects the whole estate to the law of the State of the deceased’s last habitual residence, unless the deceased chose the law of their nationality. Switzerland is not bound by the Regulation: its private international law must also be examined. Inheritance tax is governed by each State’s own tax rules, with a risk of double taxation.
How is a life insurance contract treated in a divorce?
It depends on the matrimonial property regime, the origin of the funds and the status of the contract. Under a community property regime, the Cour de cassation (France’s highest court for civil and criminal matters) holds that the surrender value of a contract still in force and funded with community funds is a community asset to be divided. The settlement must take this into account, and its tax consequences are examined at the same time as the division.