No. of Recommendations: 7
I have a cousin who inherited two apartments in Paris from his mother. She had practically no other assets. The inheritance tax was so high that he had to sell one of the two apartments to pay the tax.
That is the usual reason offered, in the US, for elimination of the "death tax", something along the line of "When Mr Green Jeans died, his son had to sell the farm, to pay the death tax".
French inheritance tax on real estate, from the net sifter
France levies a succession tax, known as droits de succession, on all real estate located in the country, regardless of the deceased's nationality or residency. The tax applies directly to each beneficiary and depends on the relationship to the deceased and the value of the property
Spouses: Legally married spouses and civil partners (PACS) are entirely exempt from inheritance tax
Direct Descendants: Children, parents, and grandchildren receive a tax-free allowance of 100,000 per child/per parent. The remaining value is taxed on a progressive scale ranging from 5% to 45%:Up to 8,072: 5% 8,073 – 12,109: 10% 12,110 – 15,932: 15%15,933 – 552,324: 20% Over 552,324: up to 45%
Other Relatives & Unrelated Heirs:Siblings: 15,932 allowance, then taxed at 35% up to 24,430 and 45% above that.Nephews and Nieces: 7,967 allowance, then taxed at 55%.Unrelated Heirs / Distant Relatives: 1,594 allowance, then a flat tax rate of 60%
If his mother had no other assets, and he did not want to spend his own money paying the tax, than any tax would require sale of one apartment to pay the tax, even if the tax is only 5%.
Steve
