Hi W has died and leaves her holiday home in France (in her sole name) to her trustees for her husband to have a right to use and enjoy it until he dies subject to him paying for the upkeep. It is then to pass to her daughter from a previous marriage. H does not intend to visit France or use the home. H and daughter intend to sell the house. As H doesn’t have a right to the proceeds of sale merely a right to use the home is it still to be declared as passing to H as a life tenant and exempt from IHT but on sale the proceeds pass to daughter? Or as H is not taking up this right to use the home does the home pass to the daughter in the first instance?
thanks
Isn’t it possible that the answer is a question of French law? France will not recognise the trusteeship, and there might instead be forced heirship, or a usufruct. Or - depending upon the facts - the EU Succession Regulation may say that UK succession law applies. You probably need to start with advice from a French qualified lawyer.
UK inheritance tax will follow the consequences of the real on-the-ground situation in France.
Agree with Andrew,
My understanding is the client needs to execute a French will refering to: - European Succession Regulation (650/2012) - requesting the will is executed under English law.
Client needs to see a French lawyer.
Richard Bishop
PFEP
many thanks this is helpful