International Succession Law in France: Legal Issues and the Interaction of Applicable Rules

Content:

The globalisation of wealth and the increasing complexity of cross-border estates 
A succession framework structured around habitual residence and estate planning
A complex interaction between civil law and tax law 
Practical challenges and securing cross-border transfers 

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The globalisation of wealth and the increasing complexity of cross-border estates 

International mobility and the diversification of assets have profoundly reshaped succession law. It is now common for an estate to involve several jurisdictions: the deceased’s residence abroad, immovable property located in different countries, or heirs dispersed internationally. This internationalisation leads to increased complexity, arising from the coexistence of different legal systems, for example with regard to forced heirship rules, testamentary freedom, and taxation. 

A succession framework structured around habitual residence and estate planning 

Under European law, and in particular within France, Regulation (EU) No 650/2012 of 4 July 2012 establishes a key principle: the law applicable to the succession is that of the deceased’s 
last habitual residence. This connecting factor aims to ensure the unity of the estate, even where assets are located in multiple countries. 

The Regulation also allows an individual to choose the law of their nationality to govern their entire succession. This mechanism plays a central role in anticipating conflicts of laws and 
securing the transfer of assets. However, this choice may be limited by certain mandatory rules, notably the protective mechanisms benefiting forced heirs, which are particularly significant under French law. 

A complex interaction between civil law and tax law 

While EU law harmonises the civil rules for determining the applicable succession law, inheritance taxation remains a matter of national law. A single estate may therefore be subject to multiple tax regimes, depending on the countries involved and the location of the assets. This separation may lead to situations of double taxation or to divergences in interpretation between tax authorities. 

Practical challenges and securing cross-border transfers 

International successions raise significant challenges: recognition of foreign wills, identification of heirs, or administration of assets located abroad. 

International succession law requires a global and anticipatory approach, combining private international law, civil law, and tax considerations. Securing wealth transfers relies on a precise analysis of the applicable rules and on planning strategies adapted to cross-border situations. 

In an increasingly international succession landscape, our firm assists clients in understanding and securing the applicable legal framework, both from a civil and tax perspective. 

Author: Soraya Racette