Expats in France - biggest lessons?

[giantpanda]

Originally Posted by parsnips

Re tontine:According to my sources(Le Particulier guide to inheritance) the tontine provides that the part belonging to the deceased goes automatically to the survivor, with the legal heirs having no claim :it can thus be used by unmarried couples (although in their case subject to punitive taxation); since the abolition of inheritance tax between spouses it can be used by married couples for any value of house. The only caveat is that the couple should not be too far apart in age so that there is a fair equality of risk of pre decease for each.

Hi!

see what I wrote earlier - only part information.

Sorry this is a theme that gets me worked up, because I had had to explain it over 30 times in the past 3 years.

The contract has 2 sides:

The contract is only valid is it is still the résidence principale of the 2 partners.

1. The property is only transmitted ( at the time without tax ) if the value at the time of the succession was under F 500,000 ( just over Euro 76,000). If the property has a higher value, this part is the contract is not valid.

This is why it has more or less disappeared in house purchases, apart from the Société Civile Immobilière. Unfortunately a lot of Immobiliers ( not of which has really no legal knowledge ) continued to offer this solution.

2. Notwithstanding, on the pure legal side the property is transmitted to the remaining partner, and is part of the succession.

But if there are " héritiers réservataires " ( children ) and their legal share of the succession, ( which can be up to 75% of the succession ) can not be served, then this is taken from the share of the partner.

For the remaining partner, it is hardly a viable solution ( apart from case with very large estates and cash accounts). This can leave the remaining partner with a larger share of the house, but no cash to live on, and there compel to sell.

Much easier is to buy ( called : "en démembrement " in French ):

To understand you need to comprehend: Propriété = nue-propriété + usufruit

- 50% nue-propriété and the 50% of the usufruit of the other partner ( for each).

So at the first death the the remaining partner before the succession ( and without any implication in the values of the succession ) owns:

50% nue-propriété and 100% usufruit,

or ( which is the same in this very case )

50% propriété and 100% usufruit.

and then he can use till his death.

Then there is the succession which has to be shared.

Yours,

giantpanda

PS. Le Particulier in some of their publications need to condense. But if you are thinking for example of th special number 957b Préparer sa succession 2002, page 32, you will find a somewhat more complete text.

[parsnips]

Re tontine: No-one claims that the tontine is the best solution for most families, only that it is now more useful for some married couples (particularly if they have bought in tontine due to bad advice in the past).
As for the 76000€ limit, the only significance of this is that beyond that value the transfer is subject to succession taxes, which in the case of married couples, no longer exist. It is true that heirs will still be entitled to their portion from the rest of the estate (if any--the house owners may not be french resident), but it does ensure that the surviving spouse can use or dispose of the property without interference.
The subject of succession planning is extremely complicated, and every family is different--no-one should make any arrangements on the strength of anything they read on a forum, but should consult a professional (preferably one recommended by satisfied clients).

[Elise]

And what can you tell me about setting up a business in France (that would eventually hire me)? I have a French partner already and our company is currently established in South African (where I live) but with the aim of opening a division based in France (as one of our primary export countries). , Could my partner's and my legal establishment of a company there also be an option for legal entry and residency to the country?

[Bevdeforges]

Originally Posted by Elise

And what can you tell me about setting up a business in France (that would eventually hire me)? I have a French partner already and our company is currently established in South African (where I live) but with the aim of opening a division based in France (as one of our primary export countries). , Could my partner's and my legal establishment of a company there also be an option for legal entry and residency to the country?

The short answer is "yes" - there is a means of establishing yourself with what is called a "carte de commerçante" as the gérant (or managing director) of a company. I haven't heard much about this option lately, but we did run across it when I had my immigration problems 10 or 15 years ago.

I think as commerçante, you'd have to be set up as the managing director (but I'm not sure of that) or at least as an "associé" (shareholder). Your French partner would probably have to set things in motion - and there is lots to do in order to establish a business in France. You may want to contact the Chambre de Commerce or the Greffe du Tribunal in the departement where you are thinking of relocating to find out the details.
Cheers,
Bev