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Hello,

I have, at best, a very basic understanding of what wealth tax is.

Rereading this and think "very basic understanding" is giving me to much
credit....

Does anyone know if real property (real estate) held in a revocable living trust (creator is trustee) is subject to wealth tax. If so would it make a difference if creator turned over the trusteeship to another unrelated party?

For individuals is there a floor(if assets are worth less than...x ) where one is exempt from this tax..?

Thank you very very much.


Best,

K
 

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Wealth tax is basically an annual tax on the value of your entire "patrimoine" - i.e. everything you own worldwide. In France the threshold was 790,000€ for 2009 - haven't seen the 2010 threshold yet, but it should be a little higher than that.

If your total holdings are less than the threshold, then no problem. There are also some rules for counting certain kinds of personal assets - personal residence, certain investments in small companies (depending on how actively involved you are in them) and a couple other items that you can count in at a lower value or exclude altogether. You also are allowed to deduct your outstanding debts, especially debts incurred to purchase the assets you're declaring.

Trusts are tricky because there isn't really a "trust" form of ownership in French law so it isn't really covered by the tax regulations for the ISF (wealth tax). Unless you're paid a reasonable amount of income (that you declare on your French income tax forms) from the trust, I'd be inclined not to include it - but you may want to run that by a dual qualified tax attorney (most likely to be found in Paris).
Cheers,
Bev
 
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