Settlement of estates in France

Basics

French inheritance law is governed by the Civil Code (code civil) – CC for short. These regulations are applicable throughout France.

Proof of inheritance law

Inheritance law “titles”

As a rule, the right of inheritance must be evidenced by a public document. The following documents are accepted:

• in the case of intestate succession: a notarial certificate of inheritance (acte de notoriétè)
• a French will
• a certificate of inheritance (only in the departments)
• European certificate of succession

A notarized will drawn up before a German notary or a recorded handwritten will are also accepted documents.

If German courts have jurisdiction, a German certificate of inheritance or a judgment of a German court establishing the heirs will also be recognized.

Under certain circumstances, the French courts may also recognize a German certificate of inheritance.

Banks in France regularly require the same proof of inheritance rights as land registries. However, it is always at the discretion of the bank to make exceptions to this rule.

Acceptance and waiver of inheritance

Basis

Just as in German inheritance law, the French heir becomes the owner upon the death of the testator. In order to be able to dispose of the property, the heir must declare acceptance of the inheritance and have it notarized. Acceptance can take place in two ways

Unconditional acceptance

In the case of unconditional acceptance, the heir accepts the inheritance immediately. The heir’s personal assets merge with those of the deceased. As a result, the heir also directly assumes all former liabilities of the deceased. He is therefore also personally liable for all of the deceased’s liabilities. Any action that gives the impression that the heir wishes to dispose of the deceased’s assets is equivalent to a notarized declaration of acceptance. This declaration of acceptance is incontestable and irrevocable.

Acceptance subject to reservation

In the case of acceptance subject to reservation, the heir undertakes to draw up an inventory of the deceased’s assets and liabilities within two months. This is usually done by a notary. The declaration is published twice by the court. While the inventory is being drawn up, the heir does not assume any of the deceased’s liabilities. After the inventory, the heir generally has a ten-year period to accept the inheritance. If this period expires, the inheritance is deemed to have been waived. However, the deadline can be significantly shortened by the remaining heirs by request. If this period expires, the inheritance is deemed to have been accepted.

Documents required for the acceptance of an inheritance in France

The following documents are usually required to prepare the notarization:

• Personal details of the deceased
• death certificate
• Certificate of the deceased’s marital status
• Certified copy of the will
• Substitute declaration for the notarial deed in the case of intestate succession
• List of the deceased’s assets and liabilities
• If there is a property, an extract from the land register

Documents that are not in French must be submitted together with a translation by a sworn translator. Foreign documents that are not recognized under international law may require legalization.

The acceptance of inheritance is usually prepared by a lawyer.

Waiver of the inheritance

The inheritance can also be waived by means of a notarial deed.

If the inheritance is only to be waived vis-à-vis the other heirs, a simple letter to them is sufficient. This declaration can be revoked within ten years as long as the inheritance has not been accepted by others.

Declaration of French inheritance tax and municipal capital gains tax

French inheritance tax should be declared and paid before the heirs are entered in the land register.

Transfer to the heirs

After notarization of the deed of acceptance of the inheritance and assignment of ownership, the application for the transfer of the property can be made. The cost of this application is based on the value of the property.

An application for transfer of title without prior acceptance of the inheritance is considered equivalent to a declaration of acceptance.

Att. Prof. (GTU / Georgien) Dr. phil. Stephan J. Lang