My UK will and living in France
Question: Is it true that even though I live in France, new legislation is coming which means I can use my UK will when I die and will pay less inheritance tax as a result?
From August 17th 2015 European law will allow British Nationals the option of electing to use their UK wills in France. The inheritance tax regimes for France & the UK are quite different and professional advice should be sought before deciding which option is going to be correct for you.
Under the UK system each person has £325,000 of tax allowances before paying death duties on their estate, whilst in France it is 100,000 Euros per child per parent. Clearly the more children you and your spouse have the greater the allowance before paying death duties in France. You also have the tax advantages in France of using an Assurance Vie, where you can leave additional money per beneficiary outside of your inheritance tax bill.
As you can see where you pay inheritance tax is not a straightforward decision and opting to use a UK will is not necessarily a good idea for everybody. Although the new regulation is still two years away, understanding how you can maximise your inheritance tax allowances now, coupled will an understanding of which regime will suit your personal circumstances better after August 2015 is a sensible idea and getting the right advice is very important.
I offer a free consultation in the privacy of your own home to discuss your circumstances and explain how to maximise your tax free allowances here in France.
It is very important to manage your money so that it works hard for you, after all you’ve worked hard to earn it and have already paid tax on it, so why would you choose for your loved ones to pay more than they need to when you are gone?