French notary Antoine Cellard has set out ways for families to lower their inheritance tax bills, as the issue of how estates are taxed becomes a growing point of political debate in France. Speaking on the television programme "Bonjour ! Avec vous," Cellard explained the current rules and offered advice on using existing allowances before any changes take effect.
The subject has taken on new urgency ahead of France's 2027 presidential election. In recent weeks, several candidates and organisations have put forward differing proposals on inheritance taxation. The CFDT trade union has proposed taxing French citizens on inheritances starting from the first euro. For now these remain only proposals, but new taxes could be introduced in the coming months.
How the current tax system works
Under the existing rules, French citizens are exempt from tax when an inheritance is worth less than 100,000 euros per child and per parent. Cellard explained that each parent can give each child 100,000 euros, so when one parent dies, each child can receive 100,000 euros tax-free, and when the second parent dies, each child can receive a further 100,000 euros tax-free.
As a result, in the case of a house worth 400,000 euros, two children would pay no tax at all if both parents died at the same time. Cellard said that French citizens overall are lightly taxed on inheritances, but that large estates are taxed heavily.
According to Cellard, French citizens pay an average tax rate of around 20 percent on inheritances. That rate can climb sharply for bigger estates, reaching as high as 45 percent. He gave the example of an estate worth five million euros passed to a single child, which would result in two million euros in tax, which he described as enormous.
Ways to cut the succession bill
To limit the tax owed, Cellard recommends planning ahead by having assets professionally valued. This gives families a clearer picture of the tax due and helps them decide whether to keep property or sell it to cover succession costs.
Planning ahead also allows families to make use of France's gifting system. Under current rules, each parent can give up to 100,000 euros to each child every 15 years without paying tax.
Cellard pointed to a lesser-known allowance of 31,865 euros, which he said few people are aware of. He explained that on top of the 100,000-euro allowance, parents can give their children 31,865 euros in cash.
The order that matters
Cellard stressed that families should use the 31,865-euro cash allowance before drawing on the 100,000-euro allowance. He said there is a correct order to follow and warned against getting the sequence wrong.
